The Security Characteristic Line (SCL) Associated with the Single-Index Model

question 62

Multiple Choice

The security characteristic line (SCL) associated with the single-index model is a plot of

• A) the security's returns on the vertical axis and the market index's returns on the horizontal axis.
• B) the market index's returns on the vertical axis and the security's returns on the horizontal axis.
• C) the security's excess returns on the vertical axis and the market index's excess returns on the horizontal axis.
• D) the market index's excess returns on the vertical axis and the security's excess returns on the horizontal axis.
• E) the security's returns on the vertical axis and Beta on the horizontal axis.

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