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Security market plane |
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Security market planeA plane that shows the relationship between expected return and the beta coefficient of more than one factor.Security market plane Similar MatchesBeta 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 Senior securitySenior securityA security that, in the event of bankruptcy, will be redeemed before any other securities. Security Market LineSecurity Market LineThe linear relationship between expected asset returns and betas posited by the Capital Asset Pricing Model. Security deposit (maintenance)Security deposit (maintenance)Related: Maintenance margin Mortgage backed securityMortgage backed securityA security, backed by one or more mortgages. Further Suggestionshigh grade securityNonmarketable security Unlisted security Asset backed security federal agency security social security disability income insurance Security Security Money market security Security deposit (initial) Margin security Security Industry Automated Corporation (SIAC) Cabinet security Undervalued security Credit linked security Fixed dollar security security Security market line International Security Market Association (ISMA) Employee Retirement Income Security Act Host security Primitive security Security certificate Zero coupon convertible security Collateral security |
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