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Which of the following are true of the Security Market Line (SML)? Select all that apply Beta is inversely proportional to expected return Capital Asset

Which of the following are true of the Security Market Line (SML)?

Select all that apply

Beta is inversely proportional to expected return

Capital Asset Pricing Model (CAPM) implies a linear relation between a stocks beta and its expected return

You can use the graph to calculate the expected Return of the Market (Rmkt)

The graph compares Beta versus Standard Deviation

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