The Security Market Line (SML)is the Graph of

question 85

Multiple Choice

The security market line (SML) is the graph of

• A)expected rate of return on investment vs. variance of returns.
• B)expected rate of return on investment vs. standard deviation of returns.
• C)expected rate of return on investment vs. beta.
• D)expected rate of return on investment vs. average returns.

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Definitions:

Milton Friedman

An influential American economist known for his strong belief in free-market capitalism and a minimal role for government in the economy.

Free Market Ethics

Moral principles or standards governing fair and competitive practices in a market economy without undue government intervention.

Duty To Rescue

A legal or moral obligation to provide assistance to a person in danger or distress, under certain circumstances.

Pre-existing Duty

A rule in contract law that states if someone is already legally obligated to perform a certain duty, promising to perform that same duty does not constitute a valid consideration for a new contract.