Which of the following statements about the security market line (SML) are true?

Group of answer choices

A. The SML is a graphic representation of the relationship between the expected return of a stock and its beta.

B. By the CAPM, the stocks that are fairly priced should be plot exactly on the SML.

C. The SML draws the relationship between a securitys return and the return on an overall stock market index.

D. Both (A) and (B) are true.