Welcome to Westonci.ca, the Q&A platform where your questions are met with detailed answers from experienced experts. Get immediate answers to your questions from a wide network of experienced professionals on our Q&A platform. Experience the ease of finding precise answers to your questions from a knowledgeable community of experts.
Sagot :
If the CAMP holds, these days in particular, international stocks are too volatile to hold in a diversified portfolio.
As the economic downturn has caused many firms to streamline their production activities, and focusing on a single product line, the Capital Asset Pricing Model (CAPM) is less useful than it once was, when firms had more diversified lines of business.
In order to test whether the alpha of any portfolio is statistically different from zero, one test of the CAPM is necessary. Thus, with the available stock returns data, the regression would be run.
Hence, these days international stocks are too volatile to hold in a diversified portfolio.
To learn more about CAPM here:
https://brainly.com/question/15548553
#SPJ4
Thank you for your visit. We're committed to providing you with the best information available. Return anytime for more. We hope you found this helpful. Feel free to come back anytime for more accurate answers and updated information. We're dedicated to helping you find the answers you need at Westonci.ca. Don't hesitate to return for more.
