A security that plots above the SML would be a good security to sell short because it is overvalued.

Name: A security that plots above the SML would be a good security to sell short because it is overvalued.
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Question

Quizplus · Accepted Answer

A security that plots above the Security Market Line (SML) is considered undervalued, not overvalued, because it offers a higher return for its level of risk compared to the market average, making it a potentially good buy rather than a sell.

A Security That Plots Above the SML Would Be a Good