The security market line is a concept similar to the capital market line except that
A) risk is measured by beta
B) return is measured by the median
C) return is measured by quarterly values
D) return is exclusive of dividends

Question

Quizplus · Accepted Answer

The security market line (SML) differs from the capital market line (CML) primarily in how risk is measured. In the SML, risk is measured by beta, which assesses the volatility of a security or a portfolio in relation to the market.

The Security Market Line Is a Concept Similar to the Capital