The Capital Asset Pricing Model (CAPM) is the equation of the Security Market Line (SML) showing the relationship between expected return and beta. The expected return for a particular asset depends on three things. Which of the following best describes these three things? a. The inflation rate, the amount of unsystematic risk, and the diversification principle. b. The amount of unsystematic risk, the reward for bearing unsystematic risk, and the inflation rate. c. The pure time value of money, the amount of systematic risk, and the reward for bearing systematic risk. d. None of the above.