Capital asset pricing model

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What additional assumptions (to the main three) are important when applying the Capital Asset Pricing Model and what are the underlying strengths and weaknesses of this application? Discuss the reliability of the model and give examples in your explanation.

Discuss the Arbitrage Pricing Theory and the Fama-French factor and the "preciseness" of techniques used to calculate cost of capital. How does one decide on which technique is best to use?

Reference no: EM13749847

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