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 aren't given. All investors focus on a single holding period. O Assets won't be short sold. There are no transaction costs. Consider the equation for the Capital Asset Pricing Model (CAPM): fi = rri + (fm -TRF) X Cov(TiTM) O'M In this equation, the term Cov (ri, rm)/0 m represents the covariance between stock i and the market stock's beta coefficient Suppose that the market's average excess return on stocks is omplete the following table by computing expected returns to stocks for each beta coefficient using the covariance between stock i and the market variance of market returns