The CAPM is a multi-period model that takes account of differences in securities' maturities, and it can be used to determine th

Question

Lady_Fox [76]

3 years ago

12

The CAPM is a multi-period model that takes account of differences in securities' maturities, and it can be used to determine th

e required rate of return for any given level of systematic risk. a. True b. False

Business

1 answer:

stich3 [128] · Answer 1 · 2022-03-29T02:56:51+03:00

Answer:

B. False

Explanation:

Capital Asset Pricing Model (CAPM) is an indicator that shows the relationship between the expected return and the risk of investing in a particular security.

This model is used to examine securities and their given prices, haven stated the expected rate of return and cost of capital involved.

CAPM is used by investors to make wise decision before investing their funds in a particular security.