Strengths-weaknesses of the capital asset pricing model


Question: What is a discount rate? Describe at least two different means to arrive at an appropriate one. What are some disadvantages of any given discount rate? What are some strengths and weaknesses of the Capital Asset Pricing Model? How would someone utilize Capital Asset Pricing Model in a financial decision-making process?

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Finance Basics: Strengths-weaknesses of the capital asset pricing model
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