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2. Given the above graph of the Security Market Line (SML), which of the five assets (A, B, C, D, or E) has the lowest

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2. Given the above graph of the Security Market Line (SML), which of the five assets (A, B, C, D, or E) has the lowest level of systematic risk? Security A Security B Security C Security D Security E 3. Given the graph of the Security Market Line (SML), which of the five assets (A, B, C, D, or E) is under-priced? Security A Security B Security C Security D Security E The following two questions refer to the graph shown below: E(Ri) SML D E(RM) B=1

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