NACVA CVA Exam - Topic 3 Question 131 Discussion
The assumptions underlying the capital asset pricing model are as follows:
D) The rate received from lending money is more than the cost of borrowing money
A) Investors are risk averse
B) Rational investors seek to hold efficient portfolios-that is, portfolios that are fully diversified
C) All investors have identical investment time horizons (i.e., expected holding periods)
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