Which of the following is not a component of the security market line equation?
A)risk-free rate
B)expected return on the market
C)an asset's systematic risk
D)an asset's unsystematic risk

Question

Quizplus · Accepted Answer

The security market line equation includes the risk-free rate, expected return on the market, and an asset's systematic risk. Unsystematic risk is not a factor included in the equation.

Which of the Following Is Not a Component of the Security