Reading 51: An Introduction to Asset Pricing Models - LOS

答案和详解如下：

1.Which is NOT an assumption of capital market theory?

A)   There are no taxes or transaction costs.

B)   All investors have homogeneous expectations.

C)   There is no inflation.

D)   Investments are not divisible.

The correct answer was D)

Capital market theory assumes that all investments are infinitely divisible. The other statements are basic assumptions of capital market theory.

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

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

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

C)   select portfolios that lie below the efficient frontier to optimize the risk-return relationship.

D)   have multiple-period time horizons.

The correct answer was A)

All investors select portfolios that lie along the efficient frontier, based on their utility functions. All investors have the same one-period time horizon, and have the same risk/return expectations.

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

A)   The capital markets are in equilibrium.

B)   There are no taxes or transaction costs.

C)   Interest rates never change from period to period.

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

The correct answer was D)

Capital market theory assumes that investors can borrow or lend at the risk-free rate. All the other statements are basic assumptions of capital market theory.