The Security Market Line represents a minimum return benchmark for an asset.

Name: The Security Market Line represents a minimum return benchmark for an asset.
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The Security Market Line (SML) represents the minimum return required for an asset to be considered as fairly priced based on its level of risk as measured by beta. Any asset which falls below the SML is considered as underpriced, while any asset above the SML is considered overpriced.

The Security Market Line Represents a Minimum Return Benchmark for an Asset