ttempts: . 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 Keep the Highest: /12 Investors have homogeneous expectations. Transaction costs are netted against expected returns. The risk-free rate changes over time. K] Investors assume that their investment activities won't affect the price of a stock. Consider the equation for the Capital Asset Pricing Model (CAPM): Cov(ri M) 2 In this equation, the term rRF represents the interest rate on a risk-free bond