Multiple Choice
One of the assumptions of the CAPM is that investors exhibit myopic behavior. What does this mean?
A) They plan for one identical holding period.
B) They are price takers who can't affect market prices through their trades.
C) They are mean-variance optimizers.
D) They have the same economic view of the world.
E) They pay no taxes or transactions costs.
Correct Answer:
Verified
Correct Answer:
Verified
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