CFA Practice Question

There are 294 practice questions for this study session.

CFA Practice Question

Beta is the slope of the ______.
A. security market line
B. characteristic line
C. efficient frontier
Explanation: Beta is the slope of the characteristic line.

User Contributed Comments 5

User Comment
ninad123 Security Market Line = Characteristic Line
teje no they are different
luyao Can someone explain the difference between the SML and a Characteristic Line?
mrpman MRP is slope of SML
Beta is slop of characteristic line
leon121 SML graphs the security's expected returns vs the beta. Characteristic line compares security and market return against risk free rate.
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