The Security Market Line Does Not

question 28

Multiple Choice

The security market line does not

• A)indicate the relationship between risk and return
• B)relate the market return and beta to a stock's return
• C)identify the optimal portfolio for the investor
• D)use beta coefficients as a measure of risk

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Definitions:

Sex Discrimination

unfair treatment based on an individual's sex, including employment practices, educational opportunities, and access to services or products.

Intermediate Scrutiny

A standard of constitutional review used by courts to evaluate laws that involve classifications based on gender or the legitimacy of children, requiring the law to further an important government objective in a way that is substantially related to that objective.

Means-Ends Test

The means-ends test is a principle used in law and ethics to evaluate whether the methods used to achieve a goal are appropriately and directly connected to the intended outcomes.

Constitutional Right

Rights afforded to individuals by the constitution that are protected from governmental interference.