Asked by Caitlin OBrien on Apr 27, 2024
Verified
Provide a definition for security market line (SML).
Security Market Line (SML)
Positively sloped straight line displaying the relationship between expected return and beta.
- Elucidate the importance of the Security Market Line (SML) and its connection to the Capital Asset Pricing Model (CAPM).
Verified Answer
TT
Taieshia TillmanMay 01, 2024
Final Answer :
Positively sloped straight line displaying the relationship between expected return and beta.
Learning Objectives
- Elucidate the importance of the Security Market Line (SML) and its connection to the Capital Asset Pricing Model (CAPM).