Question: (B) Discuss the problems that may be encountered in applying the capital asset pricing model (C) While there is a large body of evidence in

(B) Discuss the problems that may be encountered in applying the capital asset pricing model

(C) While there is a large body of evidence in support of the efficient market hypothesis, it has been suggested that this evidence only shows that it is not possible to prove that markets are inefficient. Recent research has explored Anomalies in the behaviour of prices of securities. Briefly describe these anomalies and suggest possible explanations.

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