Which three of the following are common applications of the CAPM?
A) Assessing the required rate of return on a firm's projects
B) Portfolio selection
C) Identifying incorrect ex ante assumptions in a firm's accession policy
D) Identifying mispriced shares

Question

Quizplus · Accepted Answer

The CAPM is commonly used to assess the required rate of return on a firm's projects, aid in portfolio selection, and identify mispriced shares. It is not typically used to identify incorrect ex ante assumptions in a firm's accession policy.

Which Three of the Following Are Common Applications of the CAPM