Which of the following statements about the capital market line and the security market line is most likely true?

A. The intercept of the capital market line denotes riskfree rate of return, whereas the intercept of the security market line denotes market return.

B. The capital market line is based on a security's total risk, whereas the security market line is based on a security's diversifiable risk.

C. The capital market line applies only to efficient portfolios, whereas the security market line applies to efficient as well as inefficient portfolios.

Group of answer The intercept of the capital market line denotes riskfree rate of return, whereas the intercept of the security market line denotes market return.The capital market line is based on a security's total risk, whereas the security market line is based on a security's diversifiable risk.The capital market line applies only to efficient portfolios, whereas the security market line applies to efficient as well as inefficient portfolios.