n NISM Certifications
X NISM Series X
Medium

The Capital Asset Pricing Model (CAPM) is not a method to determine the market value of a company's assets; rather, it is used to estimate the cost of equity for an investment, based on the risk-free rate, beta, and market risk premium. CAPM helps in assessing the expected return required by shareholders, but does not directly value the company’s assets.

Practice question from NISM Series XIX A- Alternative Investments Funds (AIF) Distributors Mock Test 2 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    True

  2. False

    Correct answer

A full explanation for this question is being written. In the meantime, the correct answer is highlighted above.

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