The capital asset pricing model assumes a) all investors are irrational. b) investors have heterogeneous expectations. all investors are rational and have the same holding period. d) O all investors are rational, have the same holding period, and have heterogeneous expectations. all investors have different holding periods.

Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter3: Risk And Return: Part Ii
Section: Chapter Questions
Problem 8MC
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4- The capital asset pricing model assumes
a)
all investors are irrational.
b)
investors have heterogeneous expectations.
all investors are rational and have the same holding period.
d)
all investors are rational, have the same holding period, and have heterogeneous expectations.
e) O all investors have different holding periods.
Transcribed Image Text:4- The capital asset pricing model assumes a) all investors are irrational. b) investors have heterogeneous expectations. all investors are rational and have the same holding period. d) all investors are rational, have the same holding period, and have heterogeneous expectations. e) O all investors have different holding periods.
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