What is the security market line

Reference no: EM131488140

Question: 1. What is the security market line? What does it represent?

2. What is the beta of a portfolio if funds are allocated equally between two securities listed in London Stock Exchange (LSE) and Shanghai Stock Exchange (SSE)?

3. If we were to graph the returns of a stock against the returns of the S&P 500 Index, and the points did not follow a very ordered pattern, what could we say about that stock? If the stock's returns tracked the S&P 500 returns very closely, then what could we say?

Reference no: EM131488140

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