The Security Characteristic Line (SCL)

question 29

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.
• E) None of the options are correct.

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Definitions:

Unlimited Liability

A legal obligation where business owners and investors are personally responsible for all of the debts of the business.