The Security Market Line depicts the relationship between the

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The Security Market Line depicts the relationship between the expected rate of return and the risk level of a financial asset. This relationship is often represented by a linear relationship where the expected return on an asset is equal to the risk-free rate plus a risk premium based on the asset's beta. The higher the risk level of the asset, the higher the expected rate of return must be to attract investors.

The Security Market Line Depicts the Relationship Between the