Which of the Following Is False About the Security Market

question 68

Multiple Choice

Which of the following is false about the security market line (SML) derived from the APT?

• A)The SML has a downward slope.
• B)The SML for the APT shows expected return in relation to portfolio standard deviation.
• C)The SML for the APT has an intercept equal to the expected return on the market portfolio.
• D)The benchmark portfolio for the SML may be any well-diversified portfolio.
• E)A,B,and C are false.

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