The multifactor CAPM is attractive because:
A) It is simple to use.
B) It recognized nonmarket risks.
C) It is easier to implement.
D) All of the above.
E) None of the above.

Question

Quizplus · Accepted Answer

The multifactor Capital Asset Pricing Model (CAPM) is attractive because it recognizes nonmarket risks, unlike the traditional CAPM, which only considers market risk. This allows for a more comprehensive assessment of the risks affecting an asset's returns.

The Multifactor CAPM Is Attractive Because