The Security Characteristic Line (SCL)

question 23

Multiple Choice

The security characteristic line (SCL)

• A)plots the excess return on a security as a function of the excess return on the market.
• B)allows one to estimate the beta of the security.
• C)allows one to estimate the alpha of the security.
• D)All of the options.

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Definitions:

Incurred Costs

Expenses that have been realized in the course of business operations.

Alternatives

Different options or choices available in a decision-making process.

Traceable

Costs or items that can be directly linked or attributed to a specific product, job, or department, facilitating accurate costing and financial analysis.

Avoidable Cost

A cost that can be eliminated by choosing one alternative over another in a decision. This term is synonymous with differential cost and relevant cost.