In the mean-variance capital asset pricing model without a riskless asset, the possibility of satiation sometimes leads to nonexistence of general equilibrium. Moreover, because portfolio preferences are not necessarily monotone, equilibrium asset prices, when they exist, may be negative or...

This paper presents simple conditions and a simple proof of the existence of equilibrium in asset markets where short-selling is allowed and satiation is possible. Unlike standard nonsatiation assumptions, the one used here is weak enough to be reasonable in the mean-variance capital asset...