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The Capital Asset Pricing Model was developed by William Sharpe in 1964. As a result of the Models assumptions, Sharpe reacted by saying that ''the
The Capital Asset Pricing Model was developed by William Sharpe in 1964. As a result of the Models assumptions, Sharpe reacted by saying that ''the proper test of a theory is not the realism of its assumptions, but the acceptability of its implication''. Using the CAPM and other model or theory in finance under pinned with assumptions comment on William Sharpe's statement.
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