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Inga [223]
2 years ago
11

The CAPM is built on historic conditions, although in most cases we use expected future data in applying it. Because betas used

in the CAPM are calculated using expected future data, they are not subject to changes in future volatility. This is one of the strengths of the CAPM.
a. True
b. False
Business
1 answer:
dimaraw [331]2 years ago
4 0

Answer:

False

Explanation:

The reason is that the betas are calculated using the past data which means that the Capital asset pricing model solely rely on the past data which is not the strength of the CAPM. It is basically a weakness of the model so the statement is incorrect.

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The best definitions of input, output and processing are as follows:

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Learn more about input, output, and processing at brainly.com/question/25250720

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