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The Security Market Line A. is tangent to the efficient frontier of all risky assets B. describes the relationship between expected return and beta for

  1. The Security Market Line A. is tangent to the efficient frontier of all risky assets B. describes the relationship between expected return and beta for well-diversified portfolios only.

    C. has the same economic interpretation as the capital market line D. describes the relationship between an individual securitys return and the markets return.

E. represents the expected return-beta relationship for any securities or portfolios.

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