The Security Market Line (SML)

question 6

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) shows the market risk relative to the industry risk.

---

Definitions:

PSAs

Public Service Announcements are messages in the public interest disseminated by the media without charge, with the objective of raising awareness or changing public attitudes and behavior towards a social issue.

Target Audience

A particular segment of customers targeted as the audience for a specific advertising message or strategy.

Advertising Plan

A strategy designed to promote a product, service, or brand through various forms of media, aiming to reach a target audience.

Unique Selling Proposition

A distinct advantage or benefit that sets a product or service apart from its competitors, used as a key marketing message.