The Intercept of the Security Market Line at Any Point

question 188

Multiple Choice

The intercept of the Security Market Line at any point in time is determined primarily by

• A) the prime interest rate.
• B) Federal Reserve monetary policy.
• C) the average beta of the market.
• D) investor tolerance of risk.

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Definitions:

Binomial Variable

A type of discrete variable that can take one of two independent values, often representing success or failure in an experiment.

Woman

A female human adult.

Sampling Error

The difference between a sample statistic used to estimate a population parameter and the actual but unknown value of the parameter.

Statistics

Statistics is the branch of mathematics dealing with the collection, analysis, interpretation, and presentation of masses of numerical data.