The Best Fit Line of Pairwise Plot of the Returns

question 5

Multiple Choice

The best fit line of pairwise plot of the returns of the security against the market index returns is called the:

• A) the SML.
• B) the CML.
• C) the characteristic line.
• D) the risk line.

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Definitions:

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The intensity or seriousness of a situation, condition, or issue, often indicating the level of urgency or danger associated with it.

Terminated

Brought to an end or concluded, often referring to the cessation of employment or the conclusion of an agreement.

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