Which of the following statements is incorrect?
A)The security market line shows the relationship between risk and return for any stock or portfolio.
B)The y-intercept of the security market line represents the return on the risk-free asset.
C)The measure of risk used in creating the security market line is the standard deviation.
D)None of these statements are incorrect.

Question

Quizplus · Accepted Answer

The measure of risk used in creating the security market line is beta, not standard deviation.

Which of the Following Statements Is Incorrect