Business Studies, asked by TbiaSamishta, 1 year ago

Investors recognize the capm is useless for individual investors true or false

Answers

Answered by aqibkincsem
0

"The Capital Asset Pricing Model is useless for individual investors.


The statement holds truth because even though the model shows the risk involved in investing in a security and also helps an investor in determining the expected return, it works on the basis of certain ideal assumptions.


The assumption of rationality expected from the investor is theoretical and not practical, hence CAPM fails.  

"

Answered by sumitbani608
0

Answer:

TRUE

Explanation:

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