The CAPM is based on an assumed efficient market in which there ...

[Sufayan.ah]

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]

Answer to Question 1

TRUE

Answer to Question 2

TRUE