The portfolio that contains the average return on a combination of market index with the same beta is often called _____________

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The portfolio that contains the average return on a combination of market index with the same beta is often called _____________

.

Business

1 answer:

elena-s [515] · Answer 1 · 2023-12-01T21:09:25+03:00

The portfolio that contains the common return on a mixture of market index with the same beta is often known as protection market line.

<h3>Is safety market line the same as CAPM?</h3>

The safety market line (SML) is a visual representation of the capital asset pricing model (CAPM). SML is a theoretical representation of the predicted returns of belongings primarily based on systematic, non-diversifiable risk.

<h3>How do you study a security market line?</h3>

The two-dimensional correlation between anticipated return and beta can be calculated via the CAPM formula and expressed graphically via a safety market line, or SML. Any protection plotted above the SML is interpreted as undervalued. A safety under the line is overvalued.

Learn more about security market line here:

<h3>brainly.com/question/15877803</h3><h3 /><h3>#SPJ4</h3>