What Is the Difference Between the Security Market Line (SML)and

question 84

Multiple Choice

What is the difference between the security market line (SML) and the capital market line (CML) ?

• A)SML prices total risk where CML prices non-systematic risk
• B)SML prices systematic risk where CML prices total risk
• C)SML prices total risk where CML prices systematic risk
• D)SML prices systematic risk where CML prices non-systematic risk

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Definitions:

Regular Exercise

A routine of physical activity that is performed regularly to maintain or improve health and fitness.

Quitting Smoking

The process of stopping the habit of smoking tobacco products, often requiring behavioral changes and sometimes medical intervention.

Unprotected Sex

Sexual activity without the use of condoms or other barrier methods, increasing the risk of sexually transmitted infections and unplanned pregnancies.

Health-Impairing Behaviours

Actions that negatively affect an individual's health, such as smoking, excessive drinking, and poor diet.