Which of the following is not an assumption under CAPM?
A. Investors make their investment decision on a single period horizon.
B. If the perceived risk is high, a risk-average investor expects higher return.
C. The investors is not limited by his wealth and price of the asset.
D. Assets can be bought at the going market price.
Answer:C
Which of the following is not an assumption under CAPM?
A. Investors make their investment decision on a single period horizon. B. If the perceived risk is high, a risk-average investor expects higher return. C. The investors is not limited by his wealth and price of the asset. D. Assets can be bought at the going market price.