The Security Market Line Is Defined as a Positively Sloped

question 98

Multiple Choice

The security market line is defined as a positively sloped straight line that displays the relationship between which two of the following variables?

• A)Beta and standard deviation
• B)Systematic and unsystematic risk
• C)Nominal and real returns
• D)Expected return and beta
• E)Risk premium and beta

---

Definitions:

Pizza Buffet

A dining establishment offering an all-you-can-eat selection of pizzas along with possibly other foods and beverages, for a set price.

Flat Rate

A fixed charge or fee that does not vary with the quantity of the service or goods provided.

Clientele

The clients or customers served by a professional or a business.

Employer-provided Health Insurance

Health insurance coverage offered to employees (and often their dependents) as part of an employment benefits package.