The Security Characteristic Line (SCL)

question 29

Multiple Choice

The security characteristic line (SCL)

• A) plots the excess return on a security as a function of the excess return on the market.
• B) allows one to estimate the beta of the security.
• C) allows one to estimate the alpha of the security.
• D) All of the options.
• E) None of the options are correct.

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Definitions:

Behavioural Interview

An interview in which job applicants are asked about past behaviours.

Structured Interview

A systematic interviewing technique where all candidates are asked the same set of predetermined questions in the same order to ensure fairness and comparability.

Exit Interview

A formal conversation between an employer and a departing employee to discuss the employee's reasons for leaving and gather feedback on the organization's practices.

Reliable And Valid

Refers to the consistency and accuracy of a method or instrument in measuring what it is supposed to measure.