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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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