Category: Business
Created by: SingleWriter
Number of Blossarys: 3
English (EN) The first assumption of capital market theory is that all investors invest efficiently. This means that investors will remain in the investing frontier and will make choices that are rational and ...
The second assumption of capital market theory is that investors only borrow at a risk free rate. This means that investors are not willing to borrow or invest at a rate that comes with risk. This ...
The fourth assumption of capital market theory is that investment time horizon is equal for all investors. Each investor will have the same time horizon for the investment he chooses, hence there ...
The fourth assumption of capital market theory is regarding the infinite divisibility of each asset. In a real world an investor might not be able to buy a stock due to its price, but in theory the ...
The fifth assumption of capital market theory is that there are no taxes levied on the investors in case they make a profit or a gain. Moreover the transactions costs are also non existent and due to ...
This assumption of capital market theory states that each investor in theory has a same probability of outcome. This means that probability of making a profit for each investor is similar. It also ...
The seventh assumption of capital market theory states that there is no inflation. This assumption allows investors to make a pure return since the real return of investors remains the return that ...
