which one of the following is represented by the slope of the security market line?

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Asked: 2023-03-05T04:33:34+05:30 In: Other
which one of the following is represented by the slope of the security market line?

Hi, I have a question and I hope anyone could answer it:

Which one of the following is represented by the slope of the security market line?

A. reward-to-risk ratio

B. market standard deviation

C. beta coefficient

D. risk-free interest rate

E. market risk premium

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1 Answer

  1. Best Answer
    Gandalf

    Answer: Since the security market line describes the relationship between risk and return, and beta is a measure of an asset’s market risk, then the slope of the line is the market risk premium.

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