Which of the following is not the assumption of CAPM of Portfolio Management?
Trading with transaction or taxation costs is not a standard CAPM assumption. The basic model assumes frictionless markets without transaction costs or taxes, alongside…
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Which of the following is not the assumption of CAPM of Portfolio Management?
Answer and explanation
Correct answer D
Trading with transaction or taxation costs is not a standard CAPM assumption. The basic model assumes frictionless markets without transaction costs or taxes, alongside rational investors and homogeneous expectations.
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West Bengal SET (WB SET)