One of the assumptions of the CAPM is that investors exhibit myopic behavior. What does this mean?
A) They plan for one identical holding period.
B) They are price takers who can't affect market prices through their trades.
C) They are mean-variance optimizers.
D) They have the same economic view of the world.
E) They pay no taxes or transactions costs.
Correct Answer:
Verified
Q70: The CAPM applies to
A) portfolios of securities
Q71: A stock generates a perpetual cash flow
Q72: Which of the following statements about the
Q73: You invest $200 in security A with
Q74: The risk-free rate is 5%. The expected
Q76: You invest 50% of your money in
Q77: Security A has an expected rate of
Q78: A stock generates a perpetual cash flow
Q79: A "fairly-priced" asset lies
A) above the security-market
Q80: A security has an expected rate of
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