Security Market Line


 

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Security market line

Line representing the relationship between expected return and market risk or beta. The slope of this line is the risk premium for beta.

Security Market Line

The linear relationship between expected asset returns and betas posited by the Capital Asset Pricing Model.



Security Market Line

Similar Matches

Collateral security

Collateral security

Additional security a borrower supplies to obtain a loan.


Supplemental Security Income

Supplemental Security Income

A Social Security program established to help the blind, disabled, and poor.


Beta equation (security)

Beta equation (security)

The market beta of a security is determined as follows: Regress beta of stock y on excess returns of the market. The slope coefficient is beta. Define n as number of observation numbers. Beta= [(n) (sum of [xy]) ]-[ (sum of x) (sum of y)]/ [(n) (sum of [xx]) ]-[ (sum of x) (sum of x)] where: n = # of observations (usually 36 to 60 months) x = rate of beta for the S&P 500 index y = rate of return for the security. Related: beta


Debt security

Debt security

A security such as a bond or note with specified interest, representing a loan which is repayable at some future date.


Mutilated security

Mutilated security

A certificate on which the name of the issue, the issuer, or some other identifying detail cannot be read.


Further Suggestions

Margin security
Variable price security
Security certificate
Social Security Disability Income Insurance
security
Monthly income preferred security (MIP)
Zero coupon convertible security
Security selection
Social Security benefits
Money market security
Graduated security
high grade security
International Security Market Association (ISMA)
Asset backed security
Security selection decision
Security Industry Automated Corporation (SIAC)
Tax exempt security
Additional security fee
Security market plane
Cabinet security
social security tax
Hybrid security
Security deposit (initial)
Convertible security
social security disability income insurance


 
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