1. Which of the following is the graphical representation of CAPM? A. Capital Allocation Line B. Capital Market Line C. Security Characteristic Line D. Security Market Line According to the CAPM, what should the expected return of a zero-beta securit be? A. The market rate of return B. Zero rate of return C. A negative rate of return D. The risk-free rate 2. to the CAPM, the most relevant measure of risk is unique risk. 3. According C. D. standard deviation of returns. variance of returns A. n is that security C has an expected rate of return of 10.6%. It has a Youro 1.1 The risk-free rate is 4%, and the market expected rate ofreturn is beta of 10%. According to the Capital Asset Pricing Model, this security is A. underpriced. B. overpriced C. fairly priced. The intercept of the Security Characteristic Line (SCL) is of the SCL is 5. , while the slope A. Jensen's Alpha; Sharpe ratio of the market portfolio B. Risk Free Rate; Sharpe ratio of the market portfolio C. Jensen's Alpha; Beta Coefficient D. Risk Free Rate; Beta Coefficient