All assets are perfectly divisible and liquid in___________?
Correct answer: C. Capital asset pricing model
- A. Tax free pricing model
- B. Cost free pricing model
- C. Capital asset pricing model
- D. Stock pricing model
Explanation
A standard CAPM assumption is that assets are perfectly divisible and can be bought or sold freely in a liquid market. The other listed models are not standard names for this assumption.
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About Business Finance
Business finance explains how organisations plan, obtain and use money while balancing risk, return and liquidity. Topics include financial statements, time value of money, budgeting, working capital, capital structure, sources of finance, investment appraisal and cost of capital. Capital budgeting evaluates long-term projects, whereas working capital manages day-to-day operations.
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