Escolar Documentos
Profissional Documentos
Cultura Documentos
market
Assumption I Frictionless
market
There are at least five consequences
of violations of this assumption
1. transaction cost and personal taxes
may affect investors ability to
undertake arbitrage, which is very
important for
MM theory
propositions, the CAPM model, the
Binomial Pricing Model, and the
BSOPM Model