Question
Which of the following is true about the security market line (SML) derived from the APT? The SML is not relevant for the APT. The
Which of the following istrueabout the security market line (SML) derived from the APT?
The SML is not relevant for the APT.
The SML for the APT has an intercept equal to the expected return on the market portfolio.
The SML for the APT shows expected return in relation to portfolio standard deviation.
The benchmark portfolio for the SML may be any well-diversified portfolio.
The SML has a downward slope.
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Personal Finance Building Your Future
Authors: Robert B. Walker, Kristy P. Walker
1st edition
9780077861728, 978-0073530659
