A basic assumption of the capital asset pricing model (CAPM) is that there are no transaction costs. If this assumption is relaxed, which of the following would be the least likely to occur() A. Diversification benefits will be realized up to the point that they offset transactions costs. ...
4, p.241 Study Session 12-50-b List the assumptions about investor behavior underlying the Markowitz model. A is correct. This is not an assumption of the Markowitz model, it is an assumption of the Capital Asset Pricing Model (CAPM)....
If the Capital Asset Pricing Model (CAPM) applies and transactions costs are permitted, all else equal, the most likely result is that the security market line (SML) will:() A. plot on a flatter line. B. plot on a steeper line. C. no longer plot on a single line. 答案 C [分析]...
This assumption is based on the theory of capital asset pricing model (CAPM), which holds that the expected return of an asset is equal to the risk-free rate plus the risk premium multiplied by the systematic risk of the asset. However, this assumption may not be true in practice, ...
Which of the following is least likely an assumption of the capital asset pricing model (CAPM)?A:Security prices are not affected by investor trades.B:An investor can invest as much as he or she desires in any asset.C:Investors are different only with respect to their unique holding periods...
fankui@gaodun.com
implicitly assumes that investors have complete information on the whole stock market. This means that any type of information is instantly diffused and that investors act accordingly and as quickly as possible. Therefore, this assumption makes the asset pricing model CAPM,与相同许多其他定价模型,含蓄...
PTA doesn't mean point of zero profit for the seller. At PTA, seller may be making profit or loss, or no profit and no loss. Beyond PTA, all costs on the project are completely borne by the seller. Seller is usually more concerned about the PTA. ...
Indifference Curve: The indifference curve is a graphical representation of all the combinations of two goods and services that provide an equal level of satisfaction or utility to the consumer. Generally, the indifference curve slopes downwards because increased consumption of ...
(b) Jurisdiction to determine the facts of the case and apply the law to them is known as appellate jurisdiction. (c) A cou What assumptions do Capital Asset Pricing Model (CAPM) and Arbitrage Pricing Theory (APT) share? Also, how do they differ in terms of ...