Which of the Following Statements Regarding the Security Market Line

question 57

Multiple Choice

Which of the following statements regarding the security market line is NOT true?

• A) illustrates how required return relates to risk at any particular time.
• B) shows the market portfolio's risk premium or any stock's risk premium.
• C) is similar to the capital market line except risk is characterized by the standard deviation instead of beta.
• D) can be used to show the relationship between risk and return for any stock or portfolio.