The security market line provides a standard that can be used to make project acceptance/rejection decisions.

Question

Quizplus · Accepted Answer

The security market line (SML) is a graphical representation of the relationship between risk and return in financial markets. It provides a standard for evaluating investment opportunities and can be used to make project acceptance or rejection decisions based on the expected return and risk of the project compared to the SML. Therefore, the statement is true.

The Security Market Line Provides a Standard That Can Be