There is no reason given why sml should be straight.
A straight line is a line with the property that, if you pick any two points on the line and connect these points with a straight line, then every point on this new line lies on the original line.
It is a straight line through the origin, with a positive slope.It is a straight line through the origin, with a positive slope.It is a straight line through the origin, with a positive slope.It is a straight line through the origin, with a positive slope.
A straight angle also known as a line
There is no area of straight line because there is only 1 side!
A straight line touching the circumference of circle at one point is a tangent
No It is under the sml
sml sml sml
No- the market risk premium is the slope of the Security Market Line (SML).
SML is also known as Security market line. It is the graphical representation of CAPM or Capital Asset Pricing Model. Here few advantages of SML approach: Financing of Capital Goods Additional Source of Finance
Underpriced securities plot above the Security Market Line (SML), indicating a higher expected return for their level of risk, suggesting they are attractive investments. Conversely, overpriced securities plot below the SML, reflecting a lower expected return for their level of risk, making them less desirable investments. The SML represents the relationship between risk (beta) and expected return, serving as a benchmark for evaluating securities.
http://nga.gov.au/warhol/IMAGES/SML/44447.jpg
No, the Security Market Line (SML) is not constant over time. It represents the relationship between an investment's expected return and its systematic risk, which can fluctuate due to changes in market conditions, risk preferences, and other factors. As market conditions change, the SML may shift up or down along with expected returns.
Service Modeling Language
jeffy is sml
Super Mario Logan
Yes. If it is not straight, then it is not a line.
From Investopedia.com: The capital market line (CML) is a line used in the capital asset pricing model to illustrate the rates of return for efficient portfolios depending on the risk-free rate of return and the level of risk (standard deviation) for a particular portfolio. The CML is derived by drawing a tangent line from the intercept point on the efficient frontier to the point where the expected return equals the risk-free rate of return. The CML is considered to be superior to the efficient frontier since it takes into account the inclusion of a risk-free asset in the portfolio. The capital asset pricing model (CAPM) demonstrates that the market portfolio is essentially the efficient frontier. This is achieved visually through the security market line (SML). The security market line is a line that graphs the systematic, or market, risk versus return of the whole market at a certain time and shows all risky marketable securities. The SML essentially graphs the results from the capital asset pricing model (CAPM) formula. The x-axis represents the risk (beta), and the y-axis represents the expected return. The market risk premium is determined from the slope of the SML. The security market line is a useful tool in determining whether an asset being considered for a portfolio offers a reasonable expected return for risk. Individual securities are plotted on the SML graph. If the security's risk versus expected return is plotted above the SML, it is undervalued because the investor can expect a greater return for the inherent risk. A security plotted below the SML is overvalued because the investor would be accepting less return for the amount of risk assumed.