1.One of the following is not one of the CAPM assumptions Select one: a. Investments...
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Accounting
1.One of the following is not one of the CAPM assumptions Select one:
a. Investments are limited to a universe of publicly traded financial assets.
b. Investors pay no taxes on returns and no transaction costs.
c. All investors have average amount of endowment (wealth).
d. All investors are rational mean-variance optimizers.
e. All investors analyze securities in the same way and share the same economic view of the world.
2.According to the CAPM, all investors will hold a risky assets portfolio with equal weights of publicly traded financial securities in the ________ portfolio. Select one:
a. Market. b. Complete. c. Risk-free. d. Efficient. e. Markowitz.
3. For the CAPM to be perfect in pricing, Alphas value must be ____. Select one:
a. Positive b. Negative c. 0 d. 1 e. None of the above.
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