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Question
Which of the following are true concerning the index recommended for use in the CAPM?
I. It should include both traded and untraded investments.
II. The S&P 500 is the most common proxy for U.S. stocks.
III. The S&P 500 and the MSCI World index will produce very different results for U.S. stocks.
IV. For less developed countries, a local market index is recommended.
a) I and II.
b) I and IV.
c) II and III.
d) III and IV.
Answer
This answer is hidden. It contains 14 characters.
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