Description
FIN 515 Week 3 DQ 2
Risk Return and the CAPM
What is the relevant risk of a stock, and how is it measured? How is this information useful to an investor?
Hello! Is beta an accurate measure of risk? Why or why not? I look forward to your replies!
Is beta an accurate measure of risk? Why or why not?
What’s a typical equity market risk premium to be used in the CAPM?
What market index should be used as the market index in the CAPM?
How does the CAPM compare with the Fama-French 3-factor model?
If a stock has a negative beta, can the CAPM still be used to determined the stock’s required rate of return?
What risk-free rate of interest should be used with the CAPM?
