Discuss the capital asset pricing model

Reference no: EM131490645

Question: 1. Why is a fundamental investor suspicious about a required return estimated from the capital asset pricing model (CAPM)?

2. Why do valuation models lend themselves to "playing with mirrors"?

3. "Investing is not a game against nature, but a game against other investors." What does this statement mean? What does it imply about how to conduct equity investing?

Reference no: EM131490645

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