The Security Market Line Is a Linear Function Which Is

question 69

Multiple Choice

The security market line is a linear function which 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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Definitions:

Gold Rush

A rapid movement of people to an area where gold has been discovered, with significant historical occurrences in the United States, Australia, and South Africa.

Prospectors

Individuals who search for mineral deposits, particularly gold and silver, often during historical gold rushes.

California

A state located on the west coast of the United States, known for its diverse geography, significant economic contributions, and cultural influence.

Catholic Immigrants

Individuals who migrate from one country to another and identify with the Catholic faith, often contributing to the religious diversity of their new country.