Which of the Following Statements About the Security Market Line

Multiple Choice

Which of the following statements about the Security Market Line are correct?
I.The intercept point is the risk-free rate of return.
II.The slope of the line is beta.
III.An investor should accept any return located above the SML line.
IV.A beta of 1.0 indicates the risk-free rate of return.

A) I and II only
B) III and IV only
C) II, III and IV only
D) I,II and III only