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Which of the following is correct? a. According to the CAPM (capital asset pricing model), the intercept of the security market line should be equal

Which of the following is correct?

a. According to the CAPM (capital asset pricing model), the intercept of the security market line should be equal to zero
b. According to the CAPM (capital asset pricing model), the intercept of the security market line should be equal to the expected risk premium on the market portfolio
c. According to the CAPM (capital asset pricing model), the intercept of the security market line should be equal to the risk-free rate
d. According to the CAPM (capital asset pricing model), the intercept of the security market line should be equal to the expected return on the market portfolio

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