Standard finance assumptions
Five assumptions: investors are rational; risk averse; self-interested utility maximizers; update their belief as new information comes in; and have access to all available information.
This one is not written up yet
The definition above is the short version. A full explanation — how it works, a worked example and the exam traps — is still being written. In the meantime the chapter below covers it in context.
Written up from the same chapter
Where this is taught
Free preparation for NISM Series X-B← All terms