The Security Market Line Is a Linear Function That Is

question 4

Multiple Choice

The security market line is a linear function that is graphed by plotting data points based on the relationship between which two of the following variables?

• A)Risk-free rate and beta
• B)Market rate of return and beta
• C)Market rate of return and the risk-free rate
• D)Risk-free rate and the market rate of return
• E)Expected return and beta

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