The Capital Asset Pricing Model (CAPM) assumes that investors are rational and risk-averse, markets are efficient, investors hold diversified portfolios to eliminate unsystematic risk, there are no taxes or transaction costs, and all investors have the same expectations about returns and risks.

Authors

• Person: Not available Organization: CAUL
  Topic 2: The Risk and Return Trade Off in Financial Decision Making

Sources

• Topic 2: The Risk and Return Trade Off in Financial Decision Making oercollective.caul.edu.au CAUL via serper

Referenced by nodes (1)

• unsystematic risk concept