The implications that behavioural biases have on CAPM . Introduction: A portfolio is an accumulation of investments that are claimed or owned by an individual or business. A portfolio comprises of bonds, mutual funds, and stocks. Bonds are considered as investments in debt, which are intended to generate interests. Mutual funds are considered as a pool of money from several investors. Stocks are considered as funds for sole proprietorship.

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Chapter 13.4, Problem 2CC

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To determine: The implications that behavioural biases have on CAPM.

Introduction: A portfolio is an accumulation of investments that are claimed or owned by an individual or business. A portfolio comprises of bonds, mutual funds, and stocks. Bonds are considered as investments in debt, which are intended to generate interests. Mutual funds are considered as a pool of money from several investors. Stocks are considered as funds for sole proprietorship.

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