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The CAPM is built on historic conditions, although in most cases we use expected future data in applying it. Because betas used in the CAPM
The CAPM is built on historic conditions, although in most cases we use expected future data in applying it. Because betas used in the CAPM are calculated using expected future data, they are not subject to changes in future volatility. This is one of the strengths of the CAPM.
a. True
b. False
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