Reading 51: An Introduction to Asset Pricing Models - LO following, style, white, capital

mayanfang1

Q1. Which of the following is NOT an assumption of capital market theory?

A)   The capital markets are in equilibrium.

B)   Interest rates never change from period to period.

C)   Investors can lend at the risk-free rate, but borrow at a higher rate.

Q2. Which of the following is an assumption of capital market theory? All investors:

A)   select portfolios that lie above the efficient frontier to optimize the risk-return relationship.

B)   see the same risk/return distribution for a given stock.

C)   have multiple-period time horizons.

Which is NOT an assumption of capital market theory?

A)   There are no taxes or transaction costs.

B)   Investments are not divisible.

C)   There is no inflation.

yi913

Good. See a the answer

shing1314

thanks for sharing

kepei7763

thx

hawaii_boyzsh

dd

petitemango

 11

kenny_chan_chan

thx

zxybrad

dafkjadlkfjal

azure_sun

thanks

taojiaxi

tjl