Which of the Following Statements About the Security Market Line

question 59

Multiple Choice

Which of the following statements about the Security Market Line are correct?
I. The intercept point is the risk-free rate of return.
II. The slope of the line is beta.
III. An investor should accept any return located above the SML line.
IV. A beta of 1.0 indicates the risk-free rate of return.

• A) I and III only
• B) III and IV only
• C) II, III and IV only
• D) I,II and III only

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measurement unit of time equal to 1/60th of an hour or 60 seconds.

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The act of reaching a destination or coming into presence at a specific place or time.

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