The capital asset pricing model (CAPM) can best be defined as:

Multiple Choice Principle stating that the expected return on a risky asset depends only on that assets systematic risk. The amount of systematic risk present in a particular risky asset relative to an average risky asset. Positively sloped straight line displaying the relationship between expected return and beta. Slope of the SML, the difference between the expected return on a market portfolio and the risk-free rate. Equation of the SML showing the relationship between expected return and beta.