Use the Table for the Question(s) Below

question 28

Multiple Choice

Use the table for the question(s) below.
Consider the following stock price and shares outstanding data:
-Which of the following is NOT an assumption used in deriving the Capital Asset Pricing Model (CAPM) ?

• A) Investors have homogeneous expectations regarding the volatilities, correlation, and expected returns of securities.
• B) Investors have homogeneous risk adverse preferences toward taking on risk.
• C) Investors hold only efficient portfolios of traded securities; that is, portfolios that yield the maximum expected return for the given level of volatility.
• D) Investors can buy and sell all securities at competitive market prices without incurring taxes or transactions costs and can borrow and lend at the risk-free interest rate.

---

Definitions:

Speeches

Formal addresses or discourses delivered to an audience to inform, persuade, or entertain.

Corporate Branding

The practice of promoting the brand name of a corporate entity, as opposed to specific products or services.

Social Media

Digital platforms where users create, share, or exchange information and ideas in virtual communities and networks.

Media Gatekeeper

Individuals or organizations that control access to information, determining what news or content is published or broadcasted.