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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