The security market line sml or capm


The Security Market Line ("SML" or CAPM) is:

a. the same as the Capital Allocation Line ("CAL").

b. a theoretic value, but of little consequence to investors in the real world.

c. a function implying disequilibrium if the returns of a security do not plot on the line.

d. a relationship of Standard Deviation to expected returns.

e. a relationship of Standard Deviation to required returns.

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Financial Management: The security market line sml or capm
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