Which of the following are assumptions of the Capital Asset Pricing Model $($CAPM$)?$ Check all that apply.

Assets won't be short sold.

Asset quantities aren't given.

There are no transaction costs.

Asset quantities are given and fixed.

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

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

In this equation, the term Cov$\frac{r_i,r_M}{{}_M^2}$ represents the $$

Suppose that the market's average excess return on stocks is $6\mathrm{.}00\%$ and that the risk$-$free rate is $2\mathrm{.}00\%.$ Complete the following table by computing expected returns to stocks for each beta coefficient using the Capital Asset Pricing Model $($CAPM$)$:

$\backslash$table$[[b_i,$Expected Return to Stocks $(\%)],[-0\mathrm{.}50,],[0\mathrm{.}30,],[1\mathrm{.}00,],[3\mathrm{.}00,]]$

Based on the CAPM and your calculations for the return to stocks, what does it mean when the coefficient

The stock has more systematic risk than one with a larger beta.

The stock has less systematic risk than one with a larger beta.

The stock's price moves in the opposite direction of the market as a whole.