What are the most important assumptions of the Capital Asset Pricing Model (CAPM)? Explain with examples.

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What are the most important assumptions of the Capital Asset Pricing Model (CAPM)? Explain with examples.

What are the most important assumptions of the Capital Asset Pricing Model (CAPM)?

Explain with examples.

business finance

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Answer 1

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Solution : Capital Asset pricing model (CAPM) helps to wone out the required rate of retum required by the investor in the fo 6- The investors are basically risk are and diversification is needed to reduce the risk. 7- Homogenous expectations : - the

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What are the most important assumptions of the Capital Asset Pricing Model (CAPM)? Explain with examples.

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