Which one is false for the capital asset pricing model

Reference no: EM13127582

Which one is false for the capital asset pricing model (CAPM)?

Answer

a. CAPM can be used to forecast an expected return of individual security.
b. CAPM is based on the positive relation between risks and returns
c. CAPM assumes that only systematic risk is rewarded in the market, and unsystematic risk can be diversified by making portfolio.
d. CAPM is based on fundamental analysis

Reference no: EM13127582

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