单选题 Which of the following assumptions associated with the capital asset pricing model (CAPM), when relaxed, will be least likely to result in turning the security market line (SML) into a band rather than a line?

A、

A. No transaction costs.
B、

B. Equal borrowing and lending rates.
C、

C. Homogeneous expectations.

【正确答案】 B

【答案解析】If the assumption of equal borrowing and lending rates is relaxed then the CAPM cannot be derived since there is no unique market portfolio. In effect, the CML will become kinked.