Which One of the Following Is the Slope of the Security

question 68

Multiple Choice

Which one of the following is the slope of the security market line?

• A)Risk-free rate
• B)Market risk premium
• C)Beta coefficient
• D)Risk premium on an individual asset
• E)Market rate of return

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Definitions:

Objective Function

A mathematical function used in optimization to represent the goal that needs to be achieved, often minimizing or maximizing some quantity.

Linear Programming

A mathematical method for determining the best outcome (such as maximum profit or lowest cost) in a given mathematical model for some list of requirements represented as linear relationships.

Objective Function

A mathematical function used in decision-making processes, often in optimization, representing the goal that needs to be achieved.

Constraints

Restrictions or limitations in decision-making processes or in the optimization of systems, such as resource limits or production capacities.