I am looking at plots of the Security Market (SML) line and Capital market line (CML).
The X axis is the beta for the SML and Standard deviation for CML; the y axis is labeled with excess return.
Normally it would be expected return. The CML ans SML both have an Inteercept (y axis) at 0%. The intercept should normally be at the risk-free rate.
Is the Intercept at 0% and not at the risk free rate because the y axis is plotting the EXCESS returns?