Confused with slopes in SML

CFA Level I Portfolio Management
#1

Hi everyone,
A bit of a math question here, why for the SML equation, we consider that the slope is = Rm - Rf / Beta = Rm - Rf, given that Beta is equal to 1. I mean, i can calculate the slope from whatever point in my SML, not necessarly the Market portfolio (where Beta = 1) point right? Do we just calculate it from the Market Portfolio point for conveniency and having the market risk premium as a slope (dividing by one)?

#2

Yes.

1 Like
#3

Thanks for confirming!

#4

My pleasure.