Which of the Following Is not an Assumption of the Capital

question 44

Multiple Choice

Which of the following is not an assumption of the Capital Market Theory?

• A) All investors are Markowitz efficient investors.
• B) All investors have homogeneous expectations.
• C) There are no taxes or transaction costs in buying or selling assets.
• D) All investments are indivisible so it is impossible to buy or sell fractional shares.
• E) All investors have the same one period time horizon.

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Definitions:

Environment

The natural world or ecosystem in which living organisms interact and depend upon for survival, including elements like air, water, soil, and climate.

Motivational Conflict

A situation where an individual faces competing desires or goals, making it challenging to decide on a course of action.

Renovate

The process of renewing or restoring something, especially a building, to a good state of repair or to a new and improved condition.

Lifestyle

The way in which a person or group lives, including patterns of social relations, consumption, entertainment, and dress.