Question: Consider the following two statements and identify which model each describes: This model maintains that the only risk rewarded in the market with additional return
Consider the following two statements and identify which model each describes:
This model maintains that the only risk rewarded in the market with additional return is systematic or nondiversifiable risk.
FamaFrench threefactor model
Capital Asset Pricing Model
This model has been used more by academic researchers than managers of actual companies.
FamaFrench threefactor model
Capital Asset Pricing Model
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