Per the capital asset pricing model, the slope of the security market line (SML) must be 1.0.

Name: Per the capital asset pricing model, the slope of the security market line (SML) must be 1.0.
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Quizplus · Accepted Answer

Per the capital asset pricing model, the slope of the SML is equal to the market risk premium divided by the beta of the market. Therefore, the slope could be greater or less than 1.0 depending on the values of these inputs.

Per the Capital Asset Pricing Model, the Slope of the Security