17. The only person or organization eligible to borrow at the riskfree rate is (a) the U.S. Treasury. (b) a brokerage firm. (c) a consumer with a good credit rating. (d) a corporation with a high bond rating. (e) a municipality. 18. Commercial paper is a source of short-term funds for (a) the U.S. Treasury. (b) municipalities. (c) corporations with a good credit rating. (d) consumers with poor credit rating. (e) corporations with a poor credit rating. 2 3 19. (0.2 point) The CAPM assumes (a) investors are risk averse. (b) a corporate tax rate of 349. (c) the cost to borrow is greater than the benefit from lending. (d) shares must be purchased in integer increments. (e) investors will hold the securities for three years. 20. (0.2 point) The CAPM assumes an investor will choose a portfolio with (a) the largest expected return. (b) the largest expected return for a given level of risk. (c) the smallest risk. (d) the largest expected return and the largest risk. (e) the largest risk divided by the expected return. 21. (0.2 point) To choose different portfolio, the CAPM assumes investors have different (a) Beta forecasts. (b) tangent points on the efficient set of portfolios. (c) tax rates. (d) indifference curves. (e) values for the riskfree return