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Question
Which of the following is NOT true concerning the index recommended for use in the CAPM?
a) It should include both traded and untraded investments.
b) The S&P 500 is the most common proxy for U.S. stocks.
c) The S&P 500 and the MSCI World index will produce fairly similar results for U.S. stocks.
d) For less developed countries, a local market index is recommended.
Answer
This answer is hidden. It contains 14 characters.
Related questions
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When calculating gross investments, it is appropriate to add the increase in the foreign-currency translation reserve to capital expenditures to obtain the actual cash spent on capital investments.
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A firm that capitalizes R&D has more opportunity to manipulate short-term earnings compared to a firm that expenses R&D.
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The interest rate for operating lease adjustments is usually higher than the firm’s cost of debt.
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