Iris2019-02-15 00:52:58

"The CAPM was revolutionary because it was the first cogent theory to recognize that the risk of an asset was not how that asset behaved in isolation but how that asset moved in relation to other assets and to the market as a whole. Before the CAPM, risk was often thought to be an asset's own volatility. The CAPM said this was irrelevant and that the relevant measure of risk was how the asset covaried with the market portfolio--the beta of the asset." What else does he say is true about the CAPM? A.CAPM is known to be a spectacular failure with respect to its predictive power. B.Neither finance professors nor CFO employ CAPM C. Equilibrium asserts that factors are temporary because arbitrageurs eventually eliminate factors. D. Investors make very different predictions about asset returns, variances and correaltions; equilibrium is theory that says this diversity of beliefs is reconciled via the market price mechanism of supply and demand.请老师解释下这题，谢谢！