What are the problems in relation to the definition and estimation of beta measure in the Capital Asset Pricing Model (CAPM)?

Question added by Ahsan Ishtiaq , Junior Accountant , American School of Creative Science
Date Posted: 2017/07/19

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by Ahsan Ishtiaq , Junior Accountant , American School of Creative Science

According to the CAPM beta is always positive.

If beta is zero, then according to the CAPM, the required return should be equal to risk free rate which is practically not always possible.

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