One of the assumptions of the CAPM is that investors exhibit myopic behavior. What does this mean?
A. They plan for one identical holding period.
B. They are price takers who can't affect market prices through their trades.
C. They are mean-variance optimizers.
D. They have the same economic view of the world.
E. They pay no taxes or transactions costs.
A. They plan for one identical holding period.
Myopic behavior is shortsighted, with no concern for medium-term or long-term implications.
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