The risk-return relationship for each financial asset is shown on [blank].
A)the capital market line
B)the New York Stock Exchange market line
C)the security market line
D)the Australian banking line

Question

Quizplus · Accepted Answer

The risk-return relationship for financial assets is depicted on the security market line, which is a graphical representation of the Capital Asset Pricing Model (CAPM). The CAPM provides a framework for calculating the expected return on an asset given its risk and the risk-free rate of return. The security market line is a useful tool for investors in determining whether a particular financial asset is properly priced given its level of risk.

The Risk-Return Relationship for Each Financial Asset Is Shown on [Blank]