The correct answer is: A. given and fixed
The capital asset pricing model (CAPM) is a model that describes the relationship between risk and return for assets, and is widely used in finance to price risky assets. The CAPM assumes that the quantities of all assets are given and fixed. This means that the total supply of each asset is constant, and that the prices of assets are determined by the interaction of supply and demand.
The CAPM is a powerful tool for understanding risk and return, but it is important to remember that it is just a model. The assumptions of the CAPM may not always be accurate, and the CAPM should not be used as the only basis for making investment decisions.
Here is a brief explanation of each option:
- Option A: given and fixed. This is the correct answer. The CAPM assumes that the quantities of all assets are given and fixed.
- Option B: not given and fixed. This is not correct. The CAPM assumes that the quantities of all assets are given and fixed.
- Option C: not given and variable. This is not correct. The CAPM assumes that the quantities of all assets are given and fixed.
- Option D: given and variable. This is not correct. The CAPM assumes that the quantities of all assets are given and fixed.