Discuss these assumptions in the context of noise as

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Reference no: EM13480067

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.

Please limit your write-up to two pages double-spaced.

Reference no: EM13480067

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