The Security Market Line (SML) Is

question 76

Multiple Choice

The security market line (SML) is

• A) the line that describes the expected return-beta relationship for well-diversified portfolios only.
• B) also called the capital allocation line.
• C) the line that is tangent to the efficient frontier of all risky assets.
• D) the line that represents the expected return-beta relationship.
• E) All of the options.

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Definitions:

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