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()
A.The correct label for the x-axis is average risk.
B.Portfolio X’s required return is greater than the market expected return.
C.The expected return for Portfolio Z is equal to 14.8%.