Users of the CAPM should be aware of some of the problems in its practical application. These problems include which of the following?
A) estimating expected future market returns
B) determining the most appropriate measure of the risk- free rate
C) determining the best estimate of an asset's future beta
D) All of these are correct

Question

Quizplus · Accepted Answer

All of these are correct. Estimating expected future market returns, determining the most appropriate measure of the risk-free rate, and determining the best estimate of an asset's future beta are all potential problems in practical application of the CAPM.

Users of the CAPM Should Be Aware of Some of the Problems