Which of the Following Statements About the Security Market Line

question 41

Multiple Choice

Which of the following statements about the Security Market Line are correct?
I.The intercept point is the market rate of return.
II.The slope of the line is beta.
III.An investor should accept any return located above the SML line.
IV.A beta of 0.0 indicates the risk-free rate of return.

• A) I and II only
• B) III and IV only
• C) II, III and IV only
• D) I, II, and IV only

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Definitions:

Replicate

To duplicate an experiment or observaational study under the same conditions to verify results and ensure reliability.

ssRNA

Single-stranded RNA, which can act as a template for protein synthesis or be involved in the replication of some viruses.

rRNA

Ribosomal RNA, a type of RNA that, along with proteins, forms the structure of ribosomes and helps synthesize proteins in cells.

dsRNA

Double-stranded RNA, a molecular structure consisting of two complementary strands of RNA which can interfere with gene expression.