What are the major problem of CAPM theory
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What are the major problem of CAPM theory
What are the major problem of CAPM theory
What are the major problem of CAPM theory
There are two problems
First,the hypothesis of CAPM theory is only attainable in perfect competition market .
Second,it is hard to get an accurate β.
All the assumptions can be wrong, that's the problem. Like, the Beta could be wrong...etc.
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