M10:The security market line (SML) can best be defined as:

A.Slope of the SML, the difference between the expected return on a market portfolio and the risk-free rate.

B.Positively sloped straight line displaying the relationship between expected return and beta.

C.Equation of the SML showing the relationship between expected return and beta.

D.The amount of systematic risk present in a particular risky asset relative to an average risky asset.

E.Principle stating that the expected return on a risky asset depends only on that assets systematic risk.