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3. Describe the two types of corrections or customizations to this narrow stock market application that allow the classical single-factor Capital Asset Pricing Model (CAPM)
3. Describe the two types of corrections or customizations to this narrow stock market application that allow the classical single-factor Capital Asset Pricing Model (CAPM) to be applied most elegantly to real estate at the broad-brush (mixed-asset) level. (Hint: The failure to consider these two points frustrated early attempts to apply the CAPM to real estate in the 1980s.) 12 points
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