The capital asset pricing model assumes
A) all investors are rational.
B) all investors have the same holding period.
C) investors have heterogeneous expectations.
D) all investors are rational and have the same holding period.
Correct Answer:
Verified
Q41: The risk premium on the market portfolio
Q42: A "fairly-priced" asset lies
A)above the security-market line.
B)on
Q43: The security market line (SML)
A)can be portrayed
Q44: The amount that an investor allocates to
Q45: According to the CAPM, the risk premium
Q47: An overpriced security will plot
A)on the security
Q48: One of the assumptions of the CAPM
Q49: Which of the following statements about the
Q50: Standard deviation and beta both measure risk,
Q51: In equilibrium, the marginal price of risk
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