The Security Characteristic Line (SCL)associated with the Single-Index Model Is

question 27

Multiple Choice

The Security Characteristic Line (SCL) associated with the single-index model is a plot of

• A)the security's returns on the vertical axis and the market index's returns on the horizontal axis.
• B)the market index's returns on the vertical axis and the security's returns on the horizontal axis.
• C)the security's excess returns on the vertical axis and the market index's excess returns on the horizontal axis.
• D)the market index's excess returns on the vertical axis and the security's excess returns on the horizontal axis.
• E)the security's returns on the vertical axis and Beta on the horizontal axis.