The consultant has provided a list to assist in revising the pension fund's asset allocation strategy. Which specific assumption of the Capital Asset Pricing Model (CAPM) is featured in this list?

Exam-Like

There are transaction costs associated with buying and selling assets.

8.8%

An individual investor can affect the price of a stock by buying or selling that stock.

6.2%

Investors make their investment decisions by taking into account their personal income taxes.

6.2%

Investors have the same expectations regarding the expected returns and the variance of returns of all assets.

78.8%

Financial Risk Manager Part 1