« previous next »

Author Question: The CAPM is based on an assumed efficient market in which there are many small investors, each ... (Read 27 times)

Sufayan.ah

  • Hero Member
  • *****
  • Posts: 512
on: Jul 10, 2018
The CAPM is based on an assumed efficient market in which there are many small investors, each having the same information and expectations with respect to securities; there are no restrictions on investment, no taxes, and no transactions costs; and
 
  all investors are rational, view securities similarly, and are risk-averse, preferring higher returns and lower risk.
  Indicate whether the statement is true or false

Question 2

The payback period of a project that costs 1,000 initially and promises after-tax cash inflows of 3,000 each year for the next three years is 0.333 years.
 
  Indicate whether the statement is true or false


ally

  • Sr. Member
  • ****
  • Posts: 331
Reply #1 on: Jul 10, 2018
Answer to Question 1

TRUE

Answer to Question 2

TRUE


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

Cancer has been around as long as humankind, but only in the second half of the twentieth century did the number of cancer cases explode.

Did you know?

Cocaine was isolated in 1860 and first used as a local anesthetic in 1884. Its first clinical use was by Sigmund Freud to wean a patient from morphine addiction. The fictional character Sherlock Holmes was supposed to be addicted to cocaine by injection.

Did you know?

IgA antibodies protect body surfaces exposed to outside foreign substances. IgG antibodies are found in all body fluids. IgM antibodies are the first type of antibody made in response to an infection. IgE antibody levels are often high in people with allergies. IgD antibodies are found in tissues lining the abdomen and chest.

Did you know?

Although puberty usually occurs in the early teenage years, the world's youngest parents were two Chinese children who had their first baby when they were 8 and 9 years of age.

Did you know?

More than 50% of American adults have oral herpes, which is commonly known as "cold sores" or "fever blisters." The herpes virus can be active on the skin surface without showing any signs or causing any symptoms.

Bayliss and Starling discovered the mechanism by which the small intestine and pancreas work togethe Bayliss and Starling discovered the mechanism by which the small intestine and pancreas work togethe
Model for evidence-based clinical decision making. Model for evidence-based clinical decision making.
Continuum of aggression. Based on an unpublished figure by Joanne DeSanto Iennaco. Continuum of aggression. Based on an unpublished figure by Joanne DeSanto Iennaco.
Use small circular strokes up the ankle and leg. Use small circular strokes up the ankle and leg.
A car wash reduced the price of a basic wash as a promotion and test of the market. With the ... A car wash reduced the price of a basic wash as a promotion and test of the market. With the ...
Genetic Drift in Large and Small Populations Genetic Drift in Large and Small Populations
Video: Neuron structure and function - sensory neurons, association neurons & motor neurons

For a complete list of videos, visit our video library