Which of the Following Is NOT a Relaxation of the Assumptions

question 58

Multiple Choice

Which of the following is NOT a relaxation of the assumptions for the CAPM?

• A) differential lending and borrowing rates
• B) a zero-beta model
• C) transaction costs
• D) taxes
• E) homogeneous expectations and fixed planning periods

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Definitions:

Biopsychosocial Approach

A comprehensive perspective that considers the complex interplay of biological (such as genetics and biochemistry), psychological (including mood, personality, and behavior), and social elements (like culture, family, socioeconomic status, and healthcare) as influencing the outcome of diseases.

Substance Abuse

The harmful or hazardous use of psychoactive substances, including alcohol and illicit drugs, leading to addiction or dependence.

Nature and Nurture

The debate over the relative contributions of genetic predispositions (nature) and environmental influences (nurture) to human behavior and traits.

DSM-5

The Diagnostic and Statistical Manual of Mental Disorders, Fifth Edition, a major classification of mental disorders used by mental health professionals in the U.S.