单选题 If the Capital Asset Pricing Model(CAPM) assumption that there are no transactions costs is relaxed and transactions costs are permitted, all else equal, the most likely result is that the security market line (SML) will:

A、

A. plot on a steeper line.
B、

B. plot on a flatter line.
C、

C. no longer plot on a single line.

【正确答案】 C

【答案解析】Under the assumption of no transactions costs, investors will purchase or sell mispriced securities until they plot on the SML. In the presence of transactions costs, investors will not correct all mispricing because transactions costs may exceed any potential gains. Securities will plot close to the SML but not exactly on it. Thus the SML will no longer plot on a single line.