Now that you have read about the CAPM, would you ever use it
Not what you're looking for?
Now that you have read about the CAPM, would you ever use it to make personal investment decisions?
Note: the main message of the CAPM is the notion of diversification of investments. At least theoretically investors should only invest in two portfolios: one is the Market Portfolio (such as the S&P500 Index) and the other is a portfolio of short term or money market default-free securities.
Purchase this Solution
Solution Preview
Beta is a key component for the capital asset pricing model (CAPM). I would never use it to make personal investment decision because beta is calculated based on data from the past or historical data. Beta does not ...
Purchase this Solution
Free BrainMass Quizzes
IPOs
This Quiz is compiled of questions that pertain to IPOs (Initial Public Offerings)
Motivation
This tests some key elements of major motivation theories.
Cost Concepts: Analyzing Costs in Managerial Accounting
This quiz gives students the opportunity to assess their knowledge of cost concepts used in managerial accounting such as opportunity costs, marginal costs, relevant costs and the benefits and relationships that derive from them.
Learning Lean
This quiz will help you understand the basic concepts of Lean.
SWOT
This quiz will test your understanding of the SWOT analysis, including terms, concepts, uses, advantages, and process.