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The short answer is yes, it can. The long answer is that there is not a single, "click this button and poof" operation. You will need to edit each slide to remove the Hint captions.
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Thanks Rick, Is there a document online that shows how to do this?
Is it only the hint captions that need to be removed??
All depends on what you precisely want to do as assessment. If you compare the Mode settings in the Preferences, Recording, Modes you'll have some tips: Captivate will not add mouse objects nor highlight boxes for Assessment captures, will add Click boxes for mouse clicks and Text Entry Boxes where you normally will have a Typing object in Demo mode. There is a lot more editing than just remove the Hint captions... And I forgot to add that most interactive objects will have to get a score to add to the Total score if you want this to be reported.