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.

Assets have a varying level of liquidity.

Investors can borrow an unlimited amount at a risk$-$free rate.

All assets are perfectly divisible and liquid,

Investors assume that their investment activities won't affect the price of a stock.

Consider the equation for the Capital Asset Pricing Model $($CAPM$)$:

hat$(r{)}_i=r_{RP}+(hat(r{)}_M-r_{RP})\frac{\text{C}\text{o}\text{v}(r_i{r}_M)}{{}_M^2}$

In this equation, the term $(hat(r{)}_M-r_{RF})$ represents the

Suppose that the market's average excess return on average return

expected returns to stocks for each beta coefficient us additional return offered by a stock to induce investment te the following table by computing expected rate of return on Stock i

$\backslash$table$[[b_i,$Expected Return to Stocks $(\%)$

Kindly please rectify if there are any errors Also please answer the blank.