Y-Axis Intercept of the SML Represents the Required Return of a Portfolio

question 15

True/False

Y-axis intercept of the SML represents the required return of a portfolio with a beta of zero, which is the risk-free rate.

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Definitions:

Internal Threads

Threads located on the inside surface of a hole or cylinder, designed to mate with external threads of a bolt or screw.

Tap

A hand- or machine-actuated tool used to cut internal threads.

Click Type

A type of mechanism, often found in torque wrenches, that produces a clicking sound to signal the user when a pre-set torque value is reached.