Lovepr596 Lovepr596
  • 18-10-2017
  • Business
contestada

Identify and briefly discuss three criticisms of beta as used in the capital asset pricing model

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W0lf93
W0lf93 W0lf93
  • 29-10-2017
The main issues concerning beta in a capital asset pricing model involve the lack of expertise that often accompanies the beta. Even with experience and standing in the industry, beta can still be wildly off-place even from the most respected of sources. Another big concern is that most beta uses an incomplete data set to assess a pricing model. Simulations are often a better way to collect accurate estimates.
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