Practice mode Finance

In which model are all assets assumed to be perfectly divisible and liquid?

Correct answer A. Capital asset pricing model

Explanation

The CAPM rests on simplifying assumptions, including that all assets can be bought in any fraction and traded instantly without cost, so that investors hold the market portfolio.

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Answer checked 11 October 2026 How we write and check questions

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In which model are all assets assumed to be perfectly divisible and liquid?

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In which model are all assets assumed to be perfectly divisible and liquid?

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