The security market line is a graph of the expected return of a stock as a function of its beta with the market.

Name: The security market line is a graph of the expected return of a stock as a function of its beta with the market.
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Question

Quizplus · Accepted Answer

The Security Market Line (SML) is a graphical representation of the Capital Asset Pricing Model (CAPM), and it does show the expected return of a stock as a function of its beta with the market.

The Security Market Line Is a Graph of the Expected