What are the limitations of the Capital Asset Pricing Model (CAPM) as an investment appraisal technique?

Related Posts

• 
  What assumptions must be made in deriving the Capital Asset Pricing Model (CAPM)?

  Assumptions of CAPM - There is a single risk-free rate of return - An accurate…

• 
  Briefly explain three practical uses of the capital asset pricing model.

  The practical applications of capital asset pricing model (CAPM) are as follows: Determination of cost…

• 
  Limitations of social responsibility

  It increases costs to the business It makes the business to spend resources and thus…

• 
  Limitations of entrepreneurship

  Its characterized risk and uncertainty or there is no guarantee of success or failure…

• 
  Limitations of monetary policies

  Commercial banks do not cooperate fully within the central bank A government monetary system may…

• 
  Differentiate between Weighted cost of capital and marginal cost of capital.

  Weighted cost of capital and marginal cost of capital Marginal cost of capital is the…