Editing Capital asset pricing model (section)

== Assumptions ==

All investors:<ref>{{cite book|last=Arnold|first=Glen|title=Corporate financial management|year=2005|publisher=Financial Times/Prentice Hall|location=Harlow [u.a.]|page=354|edition=3.}}</ref>

# Aim to maximize economic utilities (Asset quantities are given and fixed).
# Are rational and risk-averse.
# Are broadly diversified across a range of investments.
# Are price takers, i.e., they cannot influence prices.
# Can lend and borrow unlimited amounts under the risk free rate of interest.
# Trade without transaction or taxation costs.
# Deal with securities that are all highly divisible into small parcels (All assets are perfectly divisible and liquid).
# Have homogeneous expectations.
# Assume all information is available at the same time to all investors.