Which of the following is not an assumption of CAPM?

CS Executive · Financial and Strategic Management · PYQS · December 2021
Which of the following is not an assumption of CAPM?
(A) Diversified Portfolio
(B) Single-period transaction horizon
(C) Investor can borrow and lend at the risk-free rate of return
(D) Capital market is not perfect

Answer & Explanation:

Correct Answer: Option (D)

Official answer key: (D).

Topics: Financial Management

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