1 state the assumptions of the capm mm propositions and the


Please read the attached article and answer the following questions:

1. State the assumptions of the CAPM, MM Propositions, and the BS-Option Pricing Model.

2. Discuss these assumptions in the context of "Noise" as described by Fischer Black. In particular, discuss market efficiency and the rationality of individuals. Black's section on financial markets is most critical.

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Finance Basics: 1 state the assumptions of the capm mm propositions and the
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