An Assumption of the Capital Asset Pricing Model Is That

question 58

True/False

An assumption of the capital asset pricing model is that investors can borrow or lend an unlimited amount of funds at a given risk-free rate.

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Definitions:

Business Environment

The combination of internal and external factors that influence a company's operating situation, including economic, legal, and market conditions.

Unusual In Nature

An occurrence or characteristic that is not common or ordinary, often requiring special consideration or treatment.

Infrequent Occurrence

Events or transactions that are not expected to happen regularly or often within the normal course of business.

Accounting Principle

Fundamental guidelines or rules that govern the accounting process, ensuring that financial statements are accurate, reliable, and consistent.