Which one of the following is represented by the slope of the security market line?
A)reward-to-risk ratio
B)market standard deviation
C)beta coefficient
D)risk-free interest rate
E)market risk premium

Question

Quizplus · Accepted Answer

The slope of the security market line (SML) represents the market risk premium, which is the additional return expected from holding a risky market portfolio instead of risk-free assets.

Which One of the Following Is Represented by the Slope