The CAPM (Capital Asset Pricing Model)assumes That

question 72

Multiple Choice

The CAPM (capital asset pricing model) assumes that:

• A) all assets can be traded
• B) investors are risk-averse
• C) investors have homogeneous expectations
• D) all of the above

---

Definitions:

Expansion Options

Opportunities or flexibility built into projects or investments, allowing for growth or expansions based on future conditions.

Demand Possibilities

Demand Possibilities refers to the range of potential demand outcomes a business or market may experience, based on various factors like market trends, consumer preferences, and economic conditions.

Decision Tree

A graphical representation used to illustrate the possible outcomes of a series of related choices, enabling decision-making based on different scenarios.

Poker Player

A person who plays poker, a card game that combines gambling, strategy, and skill.