1. The security market line depicts the relation between expected returns and: A. market risk. B. actual returns. C. the standard deviation of expected returns.
2. The beta of the risk-free asset is best described as: A. one. B. zero. C. infinity.
3. If prices in a market reflect all publicly available information, this market is best described as: A. weak-form efficient. B. strong-form efficient. C. semi-strong form efficient.