(Solved): The security market line (SML) is a. also called the capital allocation line. b. the line that des ...

The security market line (SML) is a. also called the capital allocation line. b. the line that describes the expected return-beta relationship for well-diversified portfolios only. c. All of the options. d. a line that has a slope equal to the risk premium of the market portfolio. e. the line that is tangent to the efficient frontier of all risky assets.