The Slope of the Security Market Line Is Equal to The

question 60

Multiple Choice

The slope of the security market line is equal to the:

• A)market risk premium.
• B)risk-free rate of return.
• C)market rate of return.
• D)market rate of return multiplied by any security's beta, given an inefficient market.
• E)market rate of return multiplied by the risk-free rate.

---

Definitions:

Sales Representatives

Individuals who sell products or services on behalf of a company, often directly to customers.

Region

A defined area of a country or the world, often characterized by specific physical, political, or cultural attributes.

Table

An arrangement of data in rows and columns that organizes and displays information clearly and systematically.

Proportion

The relationship or ratio between parts of a whole, often referring to balance and symmetry in design or composition.