The Security Characteristic Line (SCL)

question 57

Multiple Choice

The Security Characteristic Line (SCL)

• A) plots the excess return on a security as a function of the excess return on the market.
• B) allows one to estimate the beta of the security.
• C) allows one to estimate the alpha of the security.
• D) all of these.
• E) none of these.

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Definitions:

Nucleus Robustus Archistriatalis

A region in the brains of birds that is involved in song learning and production.

Birdsong

vocalizations produced by bird species, often complex and musical, used for communication and mating purposes.

Frequency

The frequency of a wave is determined by the number of vibrations that happen per unit of time, which can happen within a material like sound waves, or within an electromagnetic field, such as in the case of radio waves and light.

Amplitude

In physics, the maximum extent of a vibration or oscillation, measured from the position of equilibrium.