Business Studies, asked by amanuelhirpa2021, 2 months ago

List the assumption of capital asset pricing model

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Answered by Anonymous
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Assumptions

  • Aim to maximize economic utilities (Asset quantities are given and fixed).
  • Are rational and risk-averse.
  • Are broadly diversified across a range of investments.
  • Are price takers, i.e., they cannot influence prices.
  • Can lend and borrow unlimited amounts under the risk free rate of interest.

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