Which of these is NOT an assumption of the CAPM model?
Investors prefer less risk to more, for a given rate of return
All investors who invest in the market portfolio carry some element of systematic risk which cannot be diversified
Investors will diversify their portfolios to the fullest extent possible, eliminating all non-systematic risk
There is no risk-free return available to investors
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
(Save $1 )
One time Pay
(Save $5 )
Billed Monthly
*First month only
You can see the logs in the Dashboard.