Q716
According to capital asset pricing model assumptions, quantities of all assets are
A.
given and fixed
AnswerB.
not given and fixed
C.
not given and variable
D.
given and variable
Answer: Option A
Solution
Answer: Option A
Solution:
According to capital asset pricing model assumptions, quantities of all assets are given and fixed. The Capital Asset Pricing Model (CAPM) measures the risk of a security in relation to the portfolio. It considers the required rate of return of a security in the light of its contribution to total portfolio risk.