The Y-Axis Intercept of the SML Indicates the Required Return

question 70

True/False

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

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Definitions:

Food Web

In ecosystems, a complex pattern of interlocking and crisscrossing food chains.

Trophic Level

A position in a food chain or ecological pyramid occupied by a group of organisms with similar feeding mode.

Ecosystem

A community made up of living entities and their surrounding physical conditions, interacting together in a biological setting.

Trophic Level

The position an organism occupies in a food chain, based on its source of nutrition and energy.