Economics · Business Finance
The major factor that allowed Portfolio Theory to develop into the Capital Market Theory (such as the CAPM) is the introduction of the concept of:
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Absence of taxes and transaction costs
- 2Infinite divisibility of assets
- 3Homogeneous expectations
- 4Risk-free asset✓
Correct answer
Risk-free asset
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