What are the problems in relation to the definition and estimation of beta measure in the Capital Asset Pricing Model (CAPM)?

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Question ajoutée par Ahsan Ishtiaq , Junior Accountant , American School of Creative Science
Date de publication: 2017/07/19

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par Ahsan Ishtiaq , Junior Accountant , American School of Creative Science

According to the CAPM beta is always positive.

If beta is zero, then according to the CAPM, the required return should be equal to risk free rate which is practically not always possible.

What is the CAPM(Capital Asset Pricing Model) how it is useful ?
Top Answer: This model is useful when the securities market is assessed in relation to the risk free return offered a ... Voir Plus

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In capital assets pricing model what is beta ?and is it stable ?
Top Answer: <h3>Capital asset pricing</span&g ... Voir Plus

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Why we don't include shareholders' return formula in computing Cost of capital?
Top Answer: Cost of capital for Equity always calculated by CAPM, or Capital asset pricing model approach Cost of e ... Voir Plus

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What is the equation to calculate the following: 1)cash ratio 2)AR turn over 3)degree of financial leverage 4)capital assets pricing model?
Top Answer: 1 - cash ratio= Cash + Cash Equivalents/Current Liabilities2 - AR turn over=Net receivable sales/ Average ... Voir Plus

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