Question: Identify the one false statement about the international CAPM : ( A ) lnCAPM is used to derive an expected cost of capital. ( B

Identify the one false statement about the international CAPM : (A) lnCAPM is used to derive an expected cost of capital. (B) If the terms which measure the exposure to foreign currencies are omitted from the lnCAPM , it becomes the standard CAPM. (C) lnCAPM should be used for valuing domestic investments if the home country is part of an integrated financial market. (D) lnCAPM should not be used for valuing domestic investments if the home country is totally isolated .(E) The CAPM does not take exchange rates into account.

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