8)The Security Market Line (SML) aka Capital Asset Pricing Model (CAPM) formula is R = r(f) + B ( r(m) r(f) ). It calculates the expected return of an asset by

a. Finding the risk free rate of return in the market, then adding a calculated increase based on how that asset reacts to general market changes times a risk premium.

b. Looking at the weighted average cost of capital of a company minus the average weighted cost of capital of all companies in that industry

c. Applying the overall risk beta of a mutual fund to a new asset

d. Using Treasury Bonds increased by two standard deviations from the mean