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Security Market Line Formula and Graph

By Richard Daniels Reading Time: 4 mins
Updated March 18, 2021
security-market-line

Security Market Line Formula and Graph In the capital asset pricing model, the security market line (SML) is related to the required return and the beta risk. The 2-stock portfolio having ρ>0 is similar to the security market line. There is a direct relationship between beta and required return. For every extra relative risk of […]

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