The intercept of the characteristic line is the beta


True or False

1) The intercept of the characteristic line is the beta estimate for the asset in question

2) In the Jensen measure, the alpha and the beta are obtained by running the regression using the asset excess return as the independent variable and the market index excess return as the dependent variable

3) To draw the capital market line (CML), the Y variable is the expected rate of return and the X variable is the standard deviation

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Financial Management: The intercept of the characteristic line is the beta
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