Question
All of the following are assumptions of the Capital Asset Pricing Model (CAPM) EXCEPT a.capital markets are in equilibrium. b.investors can have different time horizons,
All of the following are assumptions of the Capital Asset Pricing Model (CAPM) EXCEPT
a.capital markets are in equilibrium.
b.investors can have different time horizons, daily, weekly, annual, or some other period.
c.investors can borrow and lend any amount at the risk-free rate.
d.all investments are infinitely divisible.
e.investors all have homogeneous expectations regarding expected returns.
Clear my choice
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Financial Theory and Corporate Policy
Authors: Thomas E. Copeland, J. Fred Weston, Kuldeep Shastri
4th edition
321127218, 978-0321179548, 321179544, 978-0321127211
