Use the following two statements to answer this question:
A) I and II are correct
B) I is correct, II is incorrect
C) I and II are incorrect
D) I is incorrect and II is correct
I.The characteristic line is a statistical approximation of the SML.
II.The SML ignores the non-systematic risk of a security.

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The Answer of Use the following two statements to answer this question:
A) I and II are correct
B) I is correct, II is incorrect
C) I and II are incorrect
D) I is incorrect and II is correct
I.The characteristic line is a statistical approximation of the SML.
II.The SML ignores the non-systematic risk of a security.

Use the Following Two Statements to Answer This Question