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