3. The basics of the Capital Asset Pricing Model Which of the following are assumptions of the Capital Asset Pricing Model (CAPM)? Check all that apply. Asset quantities are given and fixed. All investors are price givers. Investors have identical estimates of expected returns but not of variances. Investors have homogeneous expectations. Consider the equation for the Capital Asset Pricing Model (CAPM): ri=rRF+(rMrRF)2MCov(ri,rM) In this equation, the term (r^MrRF)2MCov(r1,1,rM) represents the Suppose that the market's average excess return on stocks is 10.00% and that the risk-free rate is 1.00%. Complete the following table by computing expected retums to stocks for each beta coefficient using the Capital Asset Pricing Model (CAPM): In this equation, the term (r^MrRF)2MCov(ri,rM) represents the Suppose that the market's average excess return on stocks is 10.00% and that the risk-free rate is 1.00%. Complete the the the expected returns to stocks for each beta coefficient using the Capital Asset Pricing Model (CAPM): Based on the CAPM and your calculations for the return to stocks, what does it mean when the coefficient bi>1 ? The stock is more volatile than the market. The stock's return correlates with the stock market as a whole. The stock is less volatile than the market