The Graph of the Relationship Between Expected Return and Beta

question 82

Multiple Choice

The graph of the relationship between expected return and beta in the CAPM context is called the ________.

• A) CML
• B) CAL
• C) SML
• D) SCL

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Definitions:

Coefficient Of Determination

A statistical measure in regression analysis that quantifies the proportion of the variance in the dependent variable predictable from the independent variable(s).

Coefficient Of Correlation

Measures the strength and direction of a linear relationship between two variables on a scatterplot, ranging from -1 to 1, where 1 means a perfect positive correlation and -1 means a perfect negative correlation.

Coefficient Of Correlation

A statistical measure that indicates the extent to which two or more variables fluctuate together.