The intercept point of the security market line is the rate of return which corresponds to:

A) The risk-free rate of return.
B) The market rate of return.
C) A value of zero.
D) A value of 1.0.
E) The beta of the market.

Security Market Line

A line in the Capital Asset Pricing Model (CAPM) that represents the expected return of a security based on its systematic risk or beta.

Return Rate

The gain or loss on an investment over a specified period, expressed as a percentage of the investment’s initial cost.

Intercept Point

The exact point on a graph where two lines meet, often used in statistical analysis and economics.