Capm equation does not consider standard deviation
Answers
Answered by
0
The standard deviation of an individual stock does not indicate how that stock will contribute to the risk and return of a diversified portfolio. Thus, another measure of risk is needed; a measure of a security's sytematic risk. This measure is provided by the Capital Asset Pricing Model (CAPM).
The risk-free rate in the formula represents the time value of money and compensates the investors for placing money in any investment over time. ... The CAPM model says the expected return of a security or a portfolio equals the rate on a risk-free security plus a risk premium.
The risk-free rate in the formula represents the time value of money and compensates the investors for placing money in any investment over time. ... The CAPM model says the expected return of a security or a portfolio equals the rate on a risk-free security plus a risk premium.
Answered by
0
Explanation:
The basic components of an FMS are: workstations, material handling and storage systems, computer control system, and the personnel that manage and operate the system.
Be Brainly ♥️
Similar questions