The security market line can be thought of as expressing relationships between required rates of return and ____.
A) the time value of money
B) beta
C) total risk
D) portfolio diversification

Question

Quizplus · Accepted Answer

The security market line expresses the relationship between required rates of return and beta. Beta measures the sensitivity of an asset's returns to market returns, and the security market line shows the expected return for a given level of beta.

The Security Market Line Can Be Thought of as Expressing