位置19的问题 The slope of the security market line is the:risk-free interest rate.beta coefficient.market risk premium.expected return of the market.market standard deviation.清除选择

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BlackTom AI · Accepted Answer

The question asks about what defines the slope of the security market line (SML).
Option 1: 'risk-free interest rate.' The risk-free rate is the intercept of the SML on the y-axis, not the slope. It represents the return you’d expect with zero risk, so it does not determine how steep the line is.
Option 2: 'beta coefficient.' The beta measures an asset's sensitivity to market movements, not the slope of the SML itself. It is used to determine an asset's position on the line given its expected excess return, but it does not set the line's tilt.
Option 3: 'market risk premium.' This is the correct descriptor for the SML’s slope. In CAPM, the expected excess return of an asset is equal to Beta times the market risk premium (E[R_i] - R_f = Beta_i * (E[R_m] - R_f)), so the slope of the line is precisely the market risk premium.
Option 4: 'expected return of the market.' The expected return of the market relates to the y-value when Beta equals 1, not the slope. It helps locate points on the line but does not define its tilt.
Option 5: 'market standard deviation.' This reflects total risk (volatility) of the market, not the slope of the SML. The SML slope concerns systematic risk premia, not dispersion measures like standard deviation.

In summary, the slope of the SML is determined by the market risk premium, while the other options correspond to either intercept, individual asset sensitivity, or measures of risk that do not set the line's slope.

位置19的问题 The slope of the security market line is the:risk-free interest rate.beta coefficient.market risk premium.expected return of the market.market standard deviation.清除选择

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