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

Employee Retirement Income Security Act (ERISA)

Employee Retirement Income Security Act (ERISA)

The law that regulates the operation of private pensions and benefit plans.


Collateral security

Collateral security

Additional security a borrower supplies to obtain a loan.


Employee Retirement Income Security Act

Employee Retirement Income Security Act

In the US, a federal law introduced for the protection of participants in private pension plans.


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


Margin security

Margin security

A security that may be bought or sold in a margin account as defined in Regulation T.


Further Suggestions

Hybrid security
social security disability income insurance
social security tax
Zero coupon convertible security
Asset backed security
Convertible security
Variable price security
Food security
high grade security
Supplemental Security Income
Security
Derivative security
security
Unlisted security
Monthly income preferred security (MIP)
Security selection
Money market security
debt security
Fixed dollar security
federal agency security
Security deposit (initial)
Nonmarketable security
Social Security benefits
Social Security Disability Income Insurance
Undervalued security


 
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