The Security Market Line

Multiple Choice

The security market line:

A) Is a quadratic function depicting the relationship between risk and return.
B) Has a slope which is equal to the market risk premium.
C) Has an intercept point which is equal to the market rate of return.
D) Has a slope which is equal to the risk-free rate of return.
E) Is a linear function of the relationship between total risk and the market rate of return.