The slope of the characteristic line of a security is that security's Beta.

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The slope of the characteristic line of a security is equal to the security's Beta. This statement is true. Beta is a measure of the systematic risk associated with a security and indicates the security's volatility in relation to the overall market. The slope of the characteristic line is a measure of the security's sensitivity to changes in the market index, and this sensitivity is exactly what Beta measures.

The Slope of the Characteristic Line of a Security Is