Question
9. Which of the following statement is NOT correct? CAPM assumes there is no transaction cost In an economy that has four risky assets and
9.
Which of the following statement is NOT correct?
| CAPM assumes there is no transaction cost | ||
| In an economy that has four risky assets and a risk-free asset, any portfolio on the mean-variance efficiency frontier is the best plausible portfolio | ||
| Investors are mean-variance optimizers is an assumption of CAPM | ||
| CAPM predicts stock risk premium is the product of market risk premium and market-beta |
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Focus On Personal Finance
Authors: Jack Kapoor, Les Dlabay, Robert J. Hughes, Melissa Hart
7th Edition
1265521972, 978-1265521974
