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Karo-lina-s [1.5K]
3 years ago
8

The security market line is a positively sloped straight line that displays the relationship between expected return and _______

_____.
a. WACC
b. Risk
c. Portfolio
d. Market Risk Premium
e. Beta
Business
1 answer:
Svetllana [295]3 years ago
5 0

Answer:

E) beta

Explanation:

The security market line (SML) can be regarded as a line that is drawn on a chart which represent the capital asset pricing model. And it allows to know the expected of security which can be attributed to the function of non-diversifiable risk as well as systematic

.It should be noted that The security market line is a positively sloped straight line that displays the relationship between expected return and beta

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