Review:SML Graph of=r+-r,)in (beta,return)space is a straight line called the Security Market Line: SML 0 1 If CAPM holds,every asset must be on the SML. 2010/Yichuan Liu 6   , Review: SML  Graph of ri  rf  irm  rf  Graph  in (beta, return) return) space is a straight line called the Security Market Line: SML rm rf 0 1 β  If CAPM holds, every asset must be on the SML. 2010 / Yichuan Liu 6