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Best way to respond to the below comment? What is an advantage and disadvantage of the Capital Asset Pricing Model ( CAPM ) ? List
Best way to respond to the below comment?
What is an advantage and disadvantage of the Capital Asset Pricing Model
CAPM List one advantage and one disadvantage
One advantage of CAPM is how easy it is to calculate it Users of CAPM only need
to put in different variables to easily estimate the required rate of return for an
asset. However, one disadvantage of CAPM is the assumption that investors can
borrow and lend at a riskfree rate, and that is unattainable in the real world.
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