The Best Fit Line of Pairwise Plot of the Returns

question 48

Multiple Choice

The best fit line of pairwise plot of the returns of the security against the market index returns is called :

• A) the SML.
• B) the CML.
• C) the characteristic line.
• D) the risk line.

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Definitions:

Evolutionary Process

The natural development and adaptation of organisms over time through mechanisms like natural selection and genetic drift.

Common Ancestors

Refers to an ancestor that two or more descendants or species have in common from their family tree or evolutionary path.

Harmonious Ecosystem

An ecological state wherein different species and elements of an environment interact in a balanced and beneficial manner, supporting sustainability.

Human Bipedalism

relates to the ability of humans to walk upright on two legs, a key distinguishing feature of Homo sapiens from other primates.