The Security Market Line (SML) Graphs the Expected Relationship Between

question 34

Multiple Choice

The security market line (SML) graphs the expected relationship between

• A) business risk and financial risk.
• B) systematic risk and unsystematic risk.
• C) risk and return.
• D) systematic risk and unsystematic return.
• E) real and nominal returns.

---

Definitions:

Abstract Thinking

The ability to consider concepts, possibilities, and ideas that are not immediately visible, tangible, or concrete.

Ethnic Minority

A group within a community which has different national or cultural traditions from the majority of the population.

Economically Impoverished

A state of living with insufficient financial resources to meet basic needs such as food, shelter, and clothing, often leading to a lower standard of living.

Quality Education

Education that is comprehensive, inclusive, and empowering, enabling learners to achieve their full potential and participate meaningfully in society.