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Security Market Line |
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Security market lineLine representing the relationship between expected return and market risk or beta. The slope of this line is the risk premium for beta.Security Market LineThe linear relationship between expected asset returns and betas posited by the Capital Asset Pricing Model.Security Market Line Similar MatchesSecuritySecurityA financial asset such as a share or bond.An asset which is offered by a borrower to a lender to safeguard a loan. Graduated securityGraduated securityA security that has moved from listing on an exchange of less prominence to one of more prominence. 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 Employee Retirement Income Security ActEmployee Retirement Income Security ActIn the US, a federal law introduced for the protection of participants in private pension plans. Dated securityDated securityA fixed interest security which has a specified date for repayment (redemption date). Further SuggestionsConvertible securitySecurity deposit (maintenance) International Security Market Association (ISMA) Security selection decision Senior security Security selection social security disability income insurance Unlisted security Security Security certificate Zero coupon convertible security Social Security Disability Income Insurance Mutilated security Monthly income preferred security (MIP) Supplemental Security Income Social Security benefits Security deposit (initial) Undervalued security Additional security fee Security Industry Automated Corporation (SIAC) debt security Cabinet security Nonmarketable security high grade security Hybrid security |
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