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"The international capital asset pricing model is an appealing theory but has little practical use." Critically...

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Finance

"The international capital asset pricing model is an appealingtheory but has little practical use." Critically analyse thisstatement.

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Formula for Capital Asset Pricing Model is Risk Free Rate Beta of the securityMarket Rate Risk Free rate The little practical use or disadvantages of the same can be discussed as below a Risk free rate The return of equity is calculated using Risk free rate plus surplus of Market rate over risk free rate multiplied by Beta Risk free rate changes on a frequent basis which can lead to volatile    See Answer
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