In his famous critique of the CAPM, Roll argued that the CAPM _______________.

In his famous critique of the CAPM, Roll argued that the CAPM _______________. 



A. Is not testable because the true market portfolio can never be observed
b. Is of limited use because systematic risk can never be entirely eliminated
c. Should be replaced by the APT
d. Should be replaced by the Fama French 3 factor model


Answer: A. Is not testable because the true market portfolio can never be observed


Learn More :