The Security Market Line has ________.
A)a positive slope
B)a negative slope
C)no slope
D)a beta of 1.0

Name: The Security Market Line has ________. A)a positive slope B)a negative slope C)no slope D)a beta of 1.0
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Question

Quizplus · Accepted Answer

The Security Market Line has a positive slope because it represents the relationship between the expected return of an asset and its systematic risk, which is measured by beta. As beta increases, the expected return of the asset also increases. Therefore, the slope is positive.

The Security Market Line Has ________