Which of the Following Is not a Relaxation of the Assumptions

question 23

Multiple Choice

Which of the following is not a relaxation of the assumptions for the CAPM?

• A) Differential lending and borrowing rates
• B) A zero beta model
• C) Transaction costs
• D) Taxes
• E) Homogeneous expectations and fixed planning periods

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Definitions:

Passive Dependence

A behavioral condition where an individual relies excessively on others for emotional support, decision-making, or to meet their personal needs.

Freud

Sigmund Freud, an Austrian neurologist and the founder of psychoanalysis, a clinical method for treating psychopathology through dialogue between a patient and psychoanalyst.

Incomplete Repression

A psychological phenomenon where an individual is only partially successful in keeping disturbing thoughts, feelings, or desires out of conscious awareness.

Slips of the Tongue

Inadvertent errors in speech where the speaker says something different from what they intended, often revealing subconscious thoughts or feelings.