If the cost of transactions is introduces to CAPM assumption it will result in: a) kinked CML b) several different SML’s c) no major difference d) band of returns instead of a Security Market line aren’t B and D …the exact same idea, at least? i obviously choose poorly between the 2…but at 1st glance…and now at 34th glance…they seem to be the same… unless this is a matter of semantics ??..
i would say D, the effect of many different SML lines causes a band bet option is D
yeah that is the answer…shoulda known not to overthink it
D, is what i’d say.