1.

One of the assumptions of the CAPM is that investors exhibit myopic behavior. What does this mean?

A. They plan for one identical holding period.
B. They are price-takers who can't affect market prices through their trades.
C. They are mean-variance optimizers.
D. They have the same economic view of the world.
Answer» B. They are price-takers who can't affect market prices through their trades.


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