The ________ is the intercept on the Security Market Line.
A)prime rate
B)risk-free rate
C)market rate of return
D)beta

Question

Quizplus · Accepted Answer

The intercept on the Security Market Line represents the risk-free rate, which is the rate of return an investor can earn with certainty, without taking on any risk. The other options (A, C, and D) are not related to the intercept on the Security Market Line. The prime rate is the interest rate that banks charge their best customers, the market rate of return is the expected rate of return of the overall market, and beta is a measure of an asset's sensitivity to market risk.

The ________ Is the Intercept on the Security Market Line