快考试了,有一关于ASSET PRICING MODELS的重要问题急于请教大家,考试可能会考!

graph on page 125 shows efficient frontier and CML which actually have nothing to do with systematic and unsystematic risks so far. Points on efficient frontier are different portfolios that have different risks and different expected returns; and points on CML are portfolios containing portfolios on efficient frontier plus risk-free assets. When you are dealing with SML, then you need to consider systematic and unsystematic risks. If you look at the graph on page 129, you'll find the Market portfolit which contains every risky asset in the market.