The nominal risk-free rate is the rate on government securities. Although the rate on short term sovereign securities is not truly risk-free, it may be considered as risk-free for practical purposes.Answer and Explanation: Become a Study.com member to unlock this answer! Create you...
Show 2 limitations of the one-factor CAPM model, and explain their consequences on the valuation of securities. Then, present the three-factors CAPM model, and discuss how it tackles the limitations of the one-factor model. Briefly respond: Describe the uses of di...