All of the Following Are Basic Assumptions of the CAPM

question 51

Multiple Choice

All of the following are basic assumptions of the CAPM except:

• A) Investors are risk-averse
• B) Investors want to maximize their returns
• C) Investors optimize their portfolios by avoiding risky assets
• D) Investors use diversification

---

Definitions:

United States

A country located in North America, composed of 50 states, a federal district, five major self-governing territories, and various possessions.

Hospitals

Institutions providing medical and surgical treatment and nursing care for sick or injured people.

Ninety-nine Percent

A term often used to represent the majority of a population, typically in discussions of economic disparity.

Palliative Care

Specialized medical care focused on providing relief from the symptoms and stress of a serious illness, aiming to improve quality of life for both the patient and the family.