CFA Practice Question

There are 294 practice questions for this study session.

CFA Practice Question

The line of best fit for a scatter diagram showing the rates of return of an individual risky asset and the market portfolio of risky assets over time is called the ______.
A. security characteristic line
B. capital asset pricing model
C. security market line
Explanation: The security characteristic line is the line of best fit for a scatter diagram showing the excess rates of return of an individual risky asset and the excess return of the market portfolio of risky assets over time.

User Contributed Comments 2

User Comment
neelu8 Proportion of risky asset and market portfolio changes?
americade in other words, it's a beta plot
characteristic curve plus Rf
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