位置10的问题 The ________ is a positively sloped linear function that plots securities’ expected returns against their betas.portfolio weight graphmarket real returnssecurity market linenormal distributionreward-to-risk matrix清除选择

Question

BlackTom AI · Accepted Answer

The question asks to identify the term that describes a positively sloped linear function plotting securities’ expected returns against their betas.
Option 1: portfolio weight graph. This would typically illustrate how much of a portfolio is invested in each asset, not the relationship between expected return and beta. It does not represent a regression of return on systematic risk.
Option 2: market real returns. This phrase refers to actual observed returns in the market, not a theoretical line tying expected return to beta. It lacks the formal construct of a linear relation with beta.
Option 3: security market line. This is the standard term from the Capital Asset Pricing Model (CAPM) describing a positively sloped line that relates a security’s expected return to its beta, reflecting systematic risk. It captures the core concept that higher beta yields higher expected return.
Option 4: normal distribution. While asset returns may be modeled as normal, the normal distribution itself is not the line relating expected return to beta. It does not provide the expected return versus beta relationship.
Option 5: reward-to-risk matrix. This concept is more of a general notion comparing reward to risk, but it is not the specific linear function plotting expected return against beta that the question describes.
Therefore, the most accurate choice is the security market line, as it directly expresses the required linear trade-off between expected return and beta.

位置10的问题 The ________ is a positively sloped linear function that plots securities’ expected returns against their betas.portfolio weight graphmarket real returnssecurity market linenormal distributionreward-to-risk matrix清除选择

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