Question

The CAPM is a multi-period model that takes account of differences in securities' maturities, and it can be used to determine the required rate of return for any given level of systematic risk.A. TrueB. False.

Answer 1

Answer:

False

Explanation:

The capital asset pricing model (CAPM) is used by investors to determine the risk of their portfolio, not to determine the risk of individual stocks. Therefore, the risk of a stock in a portfolio is the stock's contribution to the total risk of the portfolio.