1A. The security market line (SML) is

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

1B.

Assume that you purchased shares of High Flying mutual fund at a net asset value of $12.50 per share. During the year, you received dividend income distributions of $0.78 per share and capital gains distributions of $1.67 per share. At the end of the year, the shares had a net asset value of $13.87 per share. What was your rate of return on this investment?

		29.43%
		30.56%
		31.19%
		32.44%
		29.18%