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No- the market risk premium is the slope of the Security Market Line (SML).

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βˆ™ 2013-04-05 00:37:32
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A polynomial of degree zero is a constant term

The grouping method of factoring can still be used when only some of the terms share a common factor A True B False

The sum or difference of p and q is the of the x-term in the trinomial

A number a power of a variable or a product of the two is a monomial while a polynomial is the of monomials

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Q: Is Beta the slope of the security market line?
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Related questions

Is Beta is the slope of the security market line?

yes


How would the security market line shift if inflation decreased and investors became more risk adverse?

it will shift up, the slope will remain the same


What is the capital asset pricing model?

The CAPM is a model for pricing an individual security (asset) or a portfolio. For individual security perspective, we made use of the security market line (SML) and its relation to expected return and systematic risk (beta) to show how the market must price individual securities in relation to their security risk class. The SML enables us to calculate the reward-to-risk ratio for any security in relation to that of the overall market. Therefore, when the expected rate of return for any security is deflated by its beta coefficient, the reward-to-risk ratio for any individual security in the market is equal to the market reward-to-risk ratio


What is the slope of a line perpendicular to a line whose slope is 3?

Slope of a line = m slope of perpendicular line = -1/m


What is the difference between a line with a slope of zero and no slope?

A line with slope of zero is horizontal. A line with no slope is vertical because slope is undefined on a vertical line.


What is the slope of a line that lies perpendicular to a line with a slope of 1 5?

The line perpendicular to a line with a slope of 1/5 has a slope of -5.


If is a stock overprice does it lie on the security market line?

No It is under the sml


What do you need to use the point slope formula?

The slope of a line and the coordinates of a point on the line.The slope of a line and the coordinates of a point on the line.The slope of a line and the coordinates of a point on the line.The slope of a line and the coordinates of a point on the line.


What is the slope of a line that is perpendicular?

If the line has a slope of 2, then the perpendicular line has a slope of -1/2. The slope of a perpendicular line is the negative reciprocal. Another example would be if the slope of a line is -1/4, then the slope of the perpendicular is 4.


If the slope of the green line is -3 what is the slope of the red line?

The lines below are perpendicular. If the slope of the green line is -1, what is the slope of the red line?


The slope of a line is 2 3 what is the slope of a line that is parallel to it?

if the slope of a line is 2/3, then the slope of a parallel line would be 2/3.


If the slope of a line is 13 what is the slope of a line parallel to it?

Parallel lines have the same slope. The slope of the second line is also 13.

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