The expected return-beta relationship of the CAPM is graphically represented by

A) the security-market line.
B) the capital-market line.
C) the capital-allocation line.
D) the efficient frontier with a risk-free asset.
E) the efficient frontier without a risk-free asset.

Security-market Line

A graphical representation of the relationship between expected return and beta (systematic risk) of an investment.

Capital-market Line

A line on a graph representing the rates of return for efficient portfolios that optimally balance risk and return, based on the risk-free rate and the market portfolio.

Capital-allocation Line

A line on a graph that represents the risk-and-return profiles of risky assets, showing the possible combinations of risk and return that are available.