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Which one of the following is not an assumption of the capital asset pricing model (CAPM)? a.The capital market is perfectly competitive. b.Investors hold a
Which one of the following is not an assumption of the capital asset pricing model (CAPM)?
a.The capital market is perfectly competitive.
b.Investors hold a variety of expectations about the probability distributions of future returns on all assets
c.The only relevant risk for security valuation is non-diversifiable risk (or systematic risk).
d.All investors are rational and risk averse
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