The risk-return relationship for each financial asset is shown on
A) the capital market line.
B) the New York Stock Exchange market line.
C) the security market line.
D) none of the above.

Question

Quizplus · Accepted Answer

The risk-return relationship for financial assets is shown on the security market line, which depicts the expected return for a given level of risk, based on the asset's beta (systematic risk). The capital market line and New York Stock Exchange market line are not specific to showing the risk-return relationship for individual financial assets.

The Risk-Return Relationship for Each Financial Asset Is Shown on