Which following is NOT an assumption of the CAPM? Lending and borrowing (at the same rate) is allowed. All invertors use the same analytical tools, and therefore arrive at the same portfolio opportunity sets. All assets are publicly owned and traded. There are no taxes. All investors have the same degree of risk aversion. Which of the following statements is correct? When interest rates increase, a callable bond is more likely to be called. The call price is usually than the face of a callable bond. A callable bond is more valuable than an otherwise identical non-callable bond, regardless of interest rates. None of the above. The picture below shows the security market line. The variable along the x-axis x... Standard deviation. Beta. Expected return. Alpha. None of the above