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CAPM questions: Why do some academics say that the CAPM is inherently un-testable? What is the intuition behind the CAPM only having Beta (market risk)
CAPM questions:
- Why do some academics say that the CAPM is inherently un-testable?
- What is the intuition behind the CAPM only having Beta (market risk) priced and specific risk (nonsystematic risk) not priced.
- Selender has three stocks in his portfolio worth 1 million USD total. He has 400,000 dollars in SMU stock, which has a Beta of .8. He has 300,000
- dollars in TCU stock which has a Beta of .4. Finally, he has 300,000
dollars
in UTA stock which has a Beta of .2.
What is the Beta of his portfolio?
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Handbook Of Alternative Assets
Authors: Mark J. P. Anson
2nd Edition
047198020X, 978-0471980209
