The security market line is a graph of the expected return of a security as a function of systematic risk (beta).

Name: The security market line is a graph of the expected return of a security as a function of systematic risk (beta).
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Question

Quizplus · Accepted Answer

The security market line is a graph that plots the expected return of a security (y-axis) against its systematic risk, which is measured by beta (x-axis). Therefore, the statement is true.

The Security Market Line Is a Graph of the Expected