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:

Semantic Differential Scale

A type of survey scale used to measure the connotative meaning or attitudes of people towards a target object by presenting them with a set of bipolar adjectives.

Likert Scale

A psychometric scale commonly used in questionnaires to collect responses on how much individuals agree or disagree with a particular statement.

Dichotomous

Refers to something divided or dividing into two parts or classifications, often seen in data collection methods where responses are binary.

Household Demographic

Information about the characteristics of individuals living in a household, such as age, income, education level, and employment status.