Question: QUESTION 10 The Security Characteristic Line (SCL) A. plots the excess return on a security as a function of the excess return on the market.

QUESTION 10

  1. The Security Characteristic Line (SCL)

    A.

    plots the excess return on a security as a function of the excess return on the market.
    B.

    allows one to estimate the beta of the security.
    C.

    allows one to estimate the alpha of the security.
    D.

    plots the excess return on a security as a function of the excess return on the market, allows one to estimate the beta of the security, and allows one to estimate the alpha of the security.
    E.

    None of the above

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