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The Y-Axis Intercept of the SML Indicates the Required Return

question 70

True/False

The Y-axis intercept of the SML indicates the required return on an individual asset whenever the realized return on an average (b = 1) stock is zero.


Definitions:

Sensory Receptors

Specialized cells or nerve endings that respond to changes in the environment by converting them into electrical signals for the nervous system.

Muscles

Tissue in the body that contracts to create movement or force.

Position

A specific location or arrangement in space that an object or entity occupies at any given time.

Location

The specific place or position where something exists or is situated.

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