Correct option is B. expected return on the market.
What are the issues related with Capital Asset Pricing Model?
- One of the CAPM's unrealistic assumptions is that investors may both lend and borrow money at risk-free rates. At the GOI bond rate, investors are unable to borrow or lend. As a result, an investor's minimum necessary rate of return can exceed what the model includes.
- The risk-free rate is replaced with the yield on GOI bonds. However, due to the shifting economic conditions, this rate continues to fluctuate often. resulting in volatility
- The Beta values are erratic and change often. These are consequently not accurate projections of future risk since they could not be indicative of the actual risk involved.
To learn more about CAPM from given link
https://brainly.com/question/24158909
#SPJ4
