FRM二级在线题库,FRM二级模拟试题-融跃教育FRM

首页 > FRM二级题库 > Unit 16.The Theory of Factor Risk Premiums

登录后可用

纠错

标记

"The CAPM was revolutionary because it was the first cogent theory to recognize that the risk of an asset was not how that asset behaved in isolation but how that asset moved in relation to other assets and to the market as a whole. Before the CAPM, risk was often thought to be an asset’s own volatility. The CAPM said this was irrelevant and that the relevant measure of risk was how the asset covaried with the market portfolio—the beta of the asset." What else does he say is TRUE about the CAPM?

ACAPM is known to be a spectacular failure with respect to its predictive power

BNeither finance professors nor Chief Financial Officers (CFO) employ the CAPM in practice

CEquilibrium asserts that factors are temporary because arbitrageurs eventually eliminate factors

DInvestors make very different predictions about asset returns, variances and correlations; equilibrium is the theory that says this diversity of beliefs is reconciled via the market price mechanism of supply and demand

上一题查看解析下一题

登录后查看
没有账号？立即注册

推荐课程