Discuss the main criticisms and defenses of the capm

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The CAPM has been said to be used by almost 75% of financial practitioners. However, the CAPM has also been widely criticised due its many assumptions and limitations.

Required: Discuss the main criticisms and defenses of the CAPM? In your answer, briefly outline the alternative asset pricing models that have been developed that address these CAPM criticisms. Use dot points if necessary. State any assumptions made.

 

Reference no: EM13269321

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