Final answer:
The assertion not one of the CAPM's assumptions is d. 'All of the above are assumptions of the CAPM.' CAPM indeed assumes rational investors, borrowing/lending at the risk-free rate, and no taxes/transaction costs.
Step-by-step explanation:
The assumption that is NOT one of the Capital Asset Pricing Model (CAPM) is: d) All of the above are assumptions of the CAPM. The CAPM does indeed rely on the assumptions that: a) all investors are rational and have the same expectations about the risk-return relationship; b) investors can borrow and lend at the risk-free rate; and c) there are no taxes or transaction costs.
Understanding the CAPM is essential in financial markets as it helps estimate an investment's expected return considering risk and the time value of money. In the context of the provided excerpts, different types of investments have varying levels of expected rate of return, risk, and liquidity, which are crucial factors investors consider when saving and deciding where to allocate their financial capital.