The intercept point of the security market line is the rate of return which corresponds to risk free rate of return.
The risk-free rate is the rate of return which is offered by an investment that carries zero risk. Every investment asset carries some level of risk, however small, so the risk-free rate is something of a theoretical concept.
In practice, it's considered to be the interest rate paid on short-term government debt.
All investing activities involves balancing of risk against expected returns. All other things when kept being equal, when you take on more risk, you can earn a greater return on your investment. Take on less risk and you’ll earn a lower return.
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