The security market line (SML) is A. the line that describes the expected return-beta relationship for well-diversified portfolios only. B. also called the capital allocation line. C. the line that is tangent to the efficient frontier of all risky assets. D. the line that represents the ...
The security market line(SML) will resemble a band with fairly tight upper and lower bounds if the following assumptions are made. Which of the following should not be included in this list() A. Transaction costs. B. Differences in investor tax brackets. C. Unequal borrowing and lending rate...
The security market line (SML) is a graphical representation of the relationship between return and:A. unsystematic risk.B. systematic risk.C. total risk. 正确答案:B 分享到: 答案解析: The SML graphically represents the relationship between return and systematic risk as measured by beta. 统计:...
The security market line(SML) will resemble a band with fairly tight upper and lower bounds if the following assumptions are made. Which of the following should not be included in this list A. Transaction costs. B. Differences in investor tax brackets. C. Unequal borrowing and lending rates...
security market line (SML): A positively sloped straight line that displays the relationship between an asset's expected return and its beta. The riskless rate is the intercept and the market risk premium is the slope. state-contingent return: An asset's realized return in a given state of ...
Explain the capital asset pricing model (CAPM), including the required assumptions, and the security market line (SML). B is correct. The slope of the SML is the market risk premium, E(Rm) -Rf. It represe nts the return of the market less the return of a risk-free asset. Thus, the...
The slope of the security market line (SML) represents the portion of an asset's expected return attributable to: A. total risk. B. market risk. C. diversifiable(多样化的) risk. 相关知识点: 试题来源: 解析 B 答案:B 解析:The slope of the SML is the market risk premium,E(Rm)-Rf. ...
The capital asset pricing model (CAPM) is an equilibrium model. The security market line (SML) is probably the main contribution of the CAPM. This relation connects the expected rate of return of each security in the market to the market portfolio. It also stipulates the price of risk and ...
The security market line (SML) isA.the line that describes the expected return-beta relationship for well-diversified portfolios only.B.also called the capital allocation line.C.the line that is tangent to the efficient frontier of all risky assets.D.the
which we use to describe the relationship between systematic risk and expected return in financial markets, is usually called the security market line (SML)A positively sloped straight line displaying the relationship between expected return and beta.. After NPV, the SML is arguably the most importa...