Which One of the Following Is the Vertical Intercept of the Security

question 33

Multiple Choice

Which one of the following is the vertical intercept of the security market line?

• A)Market rate of return
• B)Individual security rate of return
• C)Market risk premium
• D)Individual security beta multiplied by the market risk premium
• E)Risk-free rate

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Definitions:

Horizontal Axis

A line that runs left to right across the chart or graph, often used to represent the independent variable in a data set.

Indifference Curve

A graph representing different bundles of goods between which a consumer is indifferent, showing the trade-offs or substitutions a consumer is willing to make.

Midterm Grade

An academic performance indicator, usually given halfway through a course, reflecting a student's progress and achievements to that point.

Horizontal Axis

In a graph or chart, the x-axis, which typically represents the independent variable or the variable that is controlled or manipulated.