The security market line depicts a A securitys expected return as a function of its systematic risk b The market portfolio as the optimal portfolio of risky securities c The relationship between a securitys return and the return on an index d The complete portfolio as a combination of the market po...

OptionA The security market line SML is a line drawn on a char ...

The security market line depicts: a. A securitys expected return as a function of its systematic risk.

Question:

The security market line depicts:
a. A security’s as a function of its systematic risk.
b. The market as the optimal of risky securities.
c. The relationship between a security’s return and the return on an index.
d. The complete as a combination of the market and the risk-free asset.

Expected Return
The expected return is the profit or loss an investor anticipates on an investment that has known or anticipated rates of return (RoR). It is calculated by multiplying potential outcomes by the chances of them occurring and then totaling these... Portfolio
A portfolio is a grouping of financial assets such as stocks, bonds, commodities, currencies and cash equivalents, as well as their fund counterparts, including mutual, exchange-traded and closed funds. A portfolio can also consist of non-publicly...