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In gym class,Emily is randomly assigned to the "Hawks" group,which plays on the basketball court while the "Wolves" group plays on the baseball field.Later,Emily gives cookies to other Hawks but not to any Wolves.This is an example of
SML
The Security Market Line, a graphical representation used in the capital asset pricing model (CAPM) to show the relationship between the risk of an investment and its expected return.
Expected Return
The anticipated gain or loss on an investment, considering both the risk and return.
Expected Return
Expected return is the anticipated profit or loss from an investment, based on the potential outcomes and their probabilities, often used to evaluate investment choices.
Risky Asset
An asset that carries a degree of risk that the value or return could be higher or lower than expected.
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