All of the Following Are Assumptions of the Capital Asset

question 111

Multiple Choice

All of the following are assumptions of the Capital Asset Pricing Model (CAPM) EXCEPT

• A) investors can borrow and lend any amount at the risk-free rate.
• B) investors all have homogeneous expectations regarding expected returns.
• C) investors can have different time horizons, daily, weekly, annual, or some other period.
• D) all investments are infinitely divisible.
• E) capital markets are in equilibrium.

---

Definitions:

Short-Term Education

Educational programs or courses designed to be completed in a brief period, often focused on specific skills or knowledge.

Redesign

The process of revising and improving upon a current design or process to enhance functionality, efficiency, or aesthetics.

Deregulate

The process of removing government regulations, typically to encourage competition and increase efficiency in markets.

Prescribed Outcome

A specific, intended result or effect of a medical treatment or intervention.