The Security Market Line (SML) Is the Graph Of

question 29

Multiple Choice

The security market line (SML) is the graph of:

• A) Expected rate on investment (Y-axis) vs. variance of return
• B) Expected return on investment vs. standard deviation of return
• C) Expected rate of return on investment vs. beta
• D) A and B

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Definitions:

Equilibrate

The process of achieving balance or stability within a system, particularly in the context of cognitive development as described by Jean Piaget.

Piaget

A psychologist known for his theory of cognitive development that describes how children's intellect grows through stages.

Logically

In a manner that is based on clear, sound reasoning or the formal principles of reasoning.