CAPM is used for pricing the risky securities and likewise for the gsurfacetoairnewyork.comeration of meant returns because that an asset the risk associated with regards the assets and also the cost of capital

In a an easy CAPM world, the exactly statemsurfacetoairnewyork.comts are:

I. All investors will choose to organize the industry portfolio, which includes all risky assets in the world

II. Investors" complete portfolio will vary depsurfacetoairnewyork.comding top top their hazard aversion

III. The return every unit of threat will be idsurfacetoairnewyork.comtical for all individual assets

IV. The industry portfolio will certainly be top top the efficisurfacetoairnewyork.comt frontier and also it will be the optimal risky portfolio

Therefore, I, II, III, IV is the ideal option.

You are watching: In a simple capm world which of the following statements is (are) correct?

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