Which of the following are assumptions of the Capital Asset Pricing Model (CAPM)? Check all that apply. Assets won't be short sold. Investors have homogeneous expectations. Asset quantities are given and fixed. Expected returns are based on individual investor risk sensitivity. Consider the equation for the Capital Asset Pricing Model (CAPM): r^i=rRF+(r^MrRF)2MCov(ri,rM) In this equation, the term (r^MrRF) represents the Supposethatthemarketsaverageexcessreturnonexpectedreturnstostocksforeachbetacoefficient Suppose that the market's average excess return on stocks is 6.00% and that the risk-free rate is 2.00%. Complete the following table by computing expected returns to stocks for each beta coefficient using the Capital Asset Pricing Model (CAPM): Based on the CAPM and your calculations for the return to stocks, what does it mean when the coefficient bi>1 ? The stock is more volatile than the market. The stock is less volatile than the market. The stock's return correlates with the stock market as a whole