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The security market line is the a)the plot of standard deviation versus variance for stocks. b)the line that graphs the expected returns for stocks versus

The security market line is the

a)the plot of standard deviation versus variance for stocks.

b)the line that graphs the expected returns for stocks versus their security rating by analysts.

c)the line that gives the expected return/idiosyncratic risk combinations of assets in a well functioning, active financial market.

d) the line that gives the expected return/systematic risk combinations of assets in a well functioning, active financial market.

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