The Y-Axis Intercept of the SML Indicates the Return on an Individual

question 10

True/False

The Y-axis intercept of the SML indicates the return on an individual asset when the realized return on an average (b = 1) stock is zero.

---

Definitions:

Statute of Frauds

A legal requirement for certain types of contracts, such as those involving real estate, to be in written form to be valid.

Sales Contracts

Sales contracts are formal agreements between a buyer and seller detailing the terms of a transaction of goods or services.

Retail Arena

The overall retail environment or marketplace where businesses sell goods and services to consumers.

UCC

The Uniform Commercial Code, a set of laws that provide legal rules and regulations governing commercial or business dealings and transactions in the United States.