36555525
Description
Mind Map by Katerina Kritikos, updated more than 1 year ago
|
Created by Katerina Kritikos
about 2 years ago
|
|
Assumptions of CAPM
- Investors are rational and risk averse.
- Investors have identical holding period.
- Market comprises many buyers and sellers and no
one individual can affect the market price.
- There are no taxes, no transaction costs
and no limits on short selling.
- Information is free and simultaneously
available to all investors.
- All investors can borrow and lend unlimited
amounts at risk free rate.
- Quantity of risky securities in the market is fixed
and ignores liquidity.
Want to create your own Mind Maps for free with GoConqr? Learn more.