Bart Campbell, CFA, is a portfolio manager who has recently met with a prospective client,Jane Black. After conducting a survey market line (SML) performance analysis using theDow Jones Industrial Average as her market proxy, Black claims that her portfolio hasexperienced superior performance. Campbell uses the capital asset pricing model as aninvestment performance measure and finds that Blacks portfolio plots below the SML.Campbell concludes that Blacks apparent superior performance is a function of anincorrectly specified market proxy, not superior investment management. JustifyCampbells conclusion by addressing the likely effects of an incorrectly specified marketproxy on both beta and the slope of the SML