When the Capital Asset Pricing Model is depicted graphically, the result is the
A) standard deviation line.
B) coefficient of variation line.
C) security market line.
D) alpha-beta line.

Question

Quizplus · Accepted Answer

The Capital Asset Pricing Model (CAPM) is graphically represented by the Security Market Line (SML). The SML plots the expected return of a security or portfolio against its beta with the market, showing the relationship between risk and expected return.

When the Capital Asset Pricing Model Is Depicted Graphically, the Result