Which of the Following Is not an Assumption of the Capital

question 44

Multiple Choice

Which of the following is not an assumption of the Capital Market Theory?

• A) All investors are Markowitz efficient investors.
• B) All investors have homogeneous expectations.
• C) There are no taxes or transaction costs in buying or selling assets.
• D) All investments are indivisible so it is impossible to buy or sell fractional shares.
• E) All investors have the same one period time horizon.

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Definitions:

Unionize

The act of organizing into or forming a union, especially for the purpose of collective bargaining with employers.

Bargain Collectively

The process by which employees negotiate contracts regarding wages, hours, and other terms of employment through their representatives.

Title VII

Refers to Title VII of the Civil Rights Act of 1964, which prohibits employment discrimination based on race, color, religion, sex, or national origin.

1964 Civil Rights Act

Landmark legislation in the United States that outlawed discrimination based on race, color, religion, sex, or national origin.