Why does required returns (as calculated by the CAPM) not always coincide with realized returns? Markets are

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Why does required returns (as calculated by the CAPM) not always coincide with realized returns?

Markets are inefficient

Beta is estimated not observed

Constructing the true market portfolio is difficult in practice

Investors are not mean-variance optimizers

Related Book For answer-question

Fundamentals of Financial Management

ISBN: 978-0324302691

11th edition

Authors: Eugene F. Brigham, ? Joel F. Houston

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Posted Date: Apr 06, 2024 11:31 AM

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Why does required returns (as calculated by the CAPM) not always coincide with realized returns? Markets are

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Fundamentals of Financial Management

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