When looking at the CAPM, which of the statements below is FALSE? A) The CAPM formula is

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When looking at the CAPM, which of the statements below is FALSE?

A) The CAPM formula is the linear equation that describes the Security Market Line (SML).

B) The CAPM in its ex-ante version is a theoretical equilibrium model.

C) In reality, the CAPM hardly holds true such that it was further developed into multi-factor models like a 5-factor model.

D) The CAPM can be further developed into multi-factor models like the Fama-French 3-factor model which also allows to analyze bonds and not only stocks.

Related Book For answer-question

Fundamentals of Investments, Valuation and Management

ISBN: 978-1259720697

8th edition

Authors: Bradford Jordan, Thomas Miller, Steve Dolvin

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Posted Date: Feb 09, 2024 05:09 AM

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When looking at the CAPM, which of the statements below is FALSE? A) The CAPM formula is

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Fundamentals of Investments, Valuation and Management

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