Examveda
Examveda

According to capital asset pricing model assumptions, investors will borrow unlimited amount of capital at any given

A. identical and fixed returns

B. risk free rate of interest

C. fixed rate of interest

D. risk free expected return

Answer: Option B

Solution(By Examveda Team)

According to capital asset pricing model assumptions, investors will borrow unlimited amount of capital at any given risk free rate of interest. The risk-free interest rate is the rate of return of a hypothetical investment with no risk of financial loss, over a given period of time.

This Question Belongs to Commerce >> Financial Management

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