What represents the Security Market Line (SML) in the Capital Asset Pricing Model (CAPM)? It shows the relationship between required return and risk measured by beta It shows the relationship between required return and the market risk premium It shows the relationship between the required return and the risk-free rate It shows the relationship between the required rate of return between two stocks None of the answers are correct! Which of the following bank accounts has the highest effective annual return? None of the statements is correct! An account that pays 9% nominal interest with daily compounding. An account that pays 10% nominal interest with annual compounding. An account that pays 10% nominal interest with daily compounding. An account that pays 10% nominal interest with monthly compounding. A bond was issued 5 years ago. The bond is a 15-year bond with a 6% coupon rate and sells today for $1,253.23. Which statement about the market rate/YTM is correct? We don't have enough information The market rate/YTM is greater than 6% The market rate/YTM is less than 6% The market rate/YTM is equal to 6%