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The security market line (SML) is a. the line that represents the expected return-beta relationship. b. the line that is tangent to the efficient frontier
The security market line (SML) is
a. | the line that represents the expected return-beta relationship. | |
b. | the line that is tangent to the efficient frontier of all risky assets. | |
c. | the line that describes the expected return-beta relationship for well-diversified portfolios only. | |
d. | the line that represents the expected return-standard deviation relationship. | |
e. | also called the capital allocation line. |
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