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Angie Ornelas
on Oct 20, 2024

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The plot of a security's excess return relative to the market's excess return is called the ________.

A) efficient frontier
B) security characteristic line
C) capital allocation line
D) capital market line

Security Characteristic Line

A graphical representation of the expected return of an asset as a function of the return on the market portfolio, illustrating the asset's systematic risk.

Excess Return

The return achieved by an asset that exceeds the risk-free rate of return.

  • Analyze outcomes of regression pertaining to stock and market yields.
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Lauren NeriaOct 23, 2024
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