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Author Question: The CAPM is based on an assumed efficient market in which there are many small investors, each ... (Read 14 times)

Sufayan.ah

  • Hero Member
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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

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Reply #1 on: Jul 10, 2018
Answer to Question 1

TRUE

Answer to Question 2

TRUE


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