According to Portfolio Theory,which of the Following Assumptions Is Not

question 66

Multiple Choice

According to portfolio theory,which of the following assumptions is not essential to the equilibrium pricing of risky assets?

• A)All investors have the same estimate of expected returns and variance of expected returns on each asset.
• B)All investors have a common single-period time horizon for investment decisions.
• C)All assets are traded in perfect markets.
• D)All investors can sell short assets (sell an asset first and then purchase later).

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Definitions:

Innovators

People or companies that introduce new ideas, products, or methods, often driving change and progress in their industry.

Customer Base

The group of customers who repeatedly purchase the goods or services of a business, creating a foundation for continuous revenue.

Technology Adoption Life Cycle

A sociological model that describes the adoption or acceptance of a new product or innovation, according to the demographic and psychological characteristics of defined adopter groups.

Market Opportunity

A potentially favorable condition in the market that a company can exploit to grow its business or introduce new products.