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Author Question: Which of the following statements is an assumption of the CAPM? (Read 76 times)

elarge

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on: Aug 7, 2023
Which of the following statements is an assumption of the CAPM?

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All investors focus on multiple holding periods, and they seek to maximize the expected utility of their terminal wealth by choosing among alternative portfolios based on each portfolio’s expected return and standard deviation.


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All investors have different estimates of the expected returns, variances, and covariances among all assets (i.e., investors have heterogeneous expectations).


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All investors can borrow or lend an unlimited amount at a given risk-free rate of interest, rRF, but there are some restrictions on short sales of any asset.


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All assets are perfectly divisible and perfectly liquid (i.e., marketable at the going price).

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Marked as best answer by elarge on Aug 7, 2023

kaynelson17

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Reply #1 on: Aug 7, 2023
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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elarge

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Reply 2 on: Aug 7, 2023
Great answer, keep it coming :)

ryansturges

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Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

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