Question: The CAPM is the most - recognized model to explain stock price returns, and forms the foundation of Modern Portfolio Theory. The CAPM is built

The CAPM is the most

-

recognized model to explain stock price returns, and forms the foundation of Modern Portfolio Theory. The CAPM is built on a single measure of risk that explains asset returns. What assumptions underlie the development of the CAPM? What are some critiques of the CAPM

(

French and Fama and Richard Roll authored studies

) ?

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