Shift up and have a steeper slope.
The security market line (SML) is a line drawn on a chart that acts as a graphical representation of the capital asset pricing model (CAPM). It displays various systematic, or market risk, levels of different marketable securities plotted against the expected return of the entire market at any given time.
The SML also referred to as the "characteristic line," is a representation of the CAPM where the y-axis of the chart represents the predicted return and the x-axis represents the risk (measured in terms of beta). Where security is plotted on the chart in relation to the SML will determine the market risk premium of that asset.
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