Which of the Following Statements About the Security Market Line

question 41

Multiple Choice

Which of the following statements about the Security Market Line are correct?
I.The intercept point is the market rate of return.
II.The slope of the line is beta.
III.An investor should accept any return located above the SML line.
IV.A beta of 0.0 indicates the risk-free rate of return.

• A) I and II only
• B) III and IV only
• C) II, III and IV only
• D) I, II, and IV only

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