36555525
Description
Mind Map by Katerina Kritikos, updated more than 1 year ago
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Created by Katerina Kritikos
over 2 years ago
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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.
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