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The security market line (SML) is a. a line that has a slope equal to the risk premium of the market portfolio. b. also called
The security market line (SML) is
| a. | a line that has a slope equal to the risk premium of the market portfolio. | |
| b. | also called the capital allocation line. | |
| c. | All of the options. | |
| d. | the line that describes the expected return-beta relationship for well-diversified portfolios only. | |
| e. | the line that is tangent to the efficient frontier of all risky assets. |
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