Category: Business

**Created by: ****SingleWriter**

Number of Blossarys: 3

The eighth and the last assumption of capital market theory states and actually reinforces the fact that markets work in an efficient manner and due to this efficiency the instruments in the market ...

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 ...

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 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 ...

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 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 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 ...