The market model specifies a very simple relationship between a security's return and the return on the

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The market model specifies a very simple relationship between a security's return and the return on the market index. Discuss some "real world" complexities that might diminish the predictive power of the market model.

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Fundamentals of Investments

ISBN: 978-0132926171

3rd edition

Authors: Gordon J. Alexander, William F. Sharpe, Jeffery V. Bailey

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Question Posted: Mar 16, 2016 02:50 AM

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The market model specifies a very simple relationship between a security's return and the return on the

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The most important complexity potentially undermining the predictive power of the market model is ...View the full answer

Fundamentals of Investments

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