The Vertical Intercept of the Security Market Line Is Determined

question 143

Multiple Choice

The vertical intercept of the Security Market Line is determined by the

• A) beta of the market portfolio.
• B) discount rate.
• C) risk-free interest rate.
• D) risk premium.

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Definitions:

Inflation Protection

Strategies or features in financial products that help preserve the purchasing power of investments by adjusting for the effects of inflation.

Job Security

The probability or likelihood that an individual will keep their job without the risk of becoming unemployed.

Working Hours

The specific times during which employees are expected to perform their job duties, commonly regulated by labor laws and company policy.

Environmental Events

Occurrences or changes in the external environment that can impact an organization, such as natural disasters, regulatory changes, or economic shifts.