The Security Market Line (SML)

question 22

Multiple Choice

The Security Market Line (SML)

• A) shows the relationship between a stock return and the market return but ignores risk.
• B) shows the relationship between risk and return.
• C) uses the AAA corporate bond rate for a riskless rate of return.
• D) none of the other answers are correct

---

Definitions:

Presbycusis

Loss of the ability to hear sounds of high frequency.

Sensory Deprivation

The intentional reduction or removal of stimuli from one or more of the senses, often used for relaxation, meditation, or in psychological experiments.

Presbycusis

Age-related hearing loss, gradually affecting the ability to perceive or understand sounds, especially in noisy environments.

High-Pitched Sounds

Sounds that have a high frequency, typically perceived as sharp or squeaky to the human ear.