单选题 Consider the following graph of the Security Market Line (SML). The letters X, Y, and Z represent risky asset portfolios. The SML crosses the y-axis at the point 0.07. The expected market return equals 13.0 percent. Based on the above information and graph provided, which of the following statements is CORRECT?

【正确答案】 C

【答案解析】The expected return for Z:7%+1.3×(13%-7%)=14.8%. The correct label for the x-ax-is is a stock's beta. Portfolio X's required return: 7%+0.7×(13%-7%)=11.2%, lower than the market expected return.