The Security Market Line ____

Multiple Choice

The security market line ____.

A) is defined as the slope of a line relating an individual security's return to the returns of other securities in that firm's primary industry
B) provides a picture of the risk-return tradeoff required by diversified investors considering various risky assets
C) has as its slope the beta of the security
D) is determined by the prevailing level of risk-free interest rates minus a risk premium