Because of arbitrage, any given financial asset will be expected to return to the Security Market Line.

Name: Because of arbitrage, any given financial asset will be expected to return to the Security Market Line.
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Arbitrage ensures that mispriced assets will be bought or sold until their prices adjust to reflect their expected return as per the Security Market Line, which represents the relationship between risk and expected return in a market in equilibrium.

Because of Arbitrage, Any Given Financial Asset Will Be Expected