Which of the following is not an assumption of Capital Asset Pricing Model (CAPM) ?

CS Executive · Financial and Strategic Management · PYQS · June 2024
Which of the following is not an assumption of Capital Asset Pricing Model (CAPM) ?
(A) Single-period transaction horizon
(B) Perfect capital market
(C) Investors cannot borrow and lend at the risk-free rate of return
(D) Perfect capital market

Answer & Explanation:

Correct Answer: Option (C)

Official answer key: (C).

Topics: Financial Management

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