Question: Question 14 Why do we use Capital Asset Pricing Model (CAPM)? because it is impractical to account for the correlations of thousands of possible investments.
Question 14 Why do we use Capital Asset Pricing Model (CAPM)? because it is impractical to account for the correlations of thousands of possible investments. because CAPM assumes that investors choose to hold the least diversified portfolio that includes all risky investments because the relevant risk of an investment is determined by how it contributes to the risk of this individual portfolio All of the above
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