Limitations of the Capital Asset Pricing Model (CAPM) include the potential inaccuracy of historical betas in predicting future volatility, the influence of factors like company size or momentum on returns, and the unrealistic assumption of a single risk-free rate for international or multi-currency investments.

Authors

• Person: Not available Organization: Pressbooks
  Chapter 8 – Risk and Return – Fundamentals of Finance

Sources

• Chapter 8 – Risk and Return – Fundamentals of Finance pressbooks.pub Pressbooks via serper

Referenced by nodes (2)

• risk-free rate concept
• volatility concept