Quiz Ch 08 – T/F CAPM’s Perspective on Asset Valuation
Fundamentals of Financial Management, Concise
Brigham and Houston
09th Edition
True or false: The Capital Asset Pricing Model (CAPM) highlights that an asset’s value should be evaluated by factoring in both its risk and expected return, assuming inclusion in a diversified portfolio. The asset’s individual risk is not pertinent in the context of CAPM.