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solution to sample test - The slope of the SCL is the beta...

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MC: BECDA BCDAA DBCBD ECBC ESSAY: The security characteristic line (SCL) is the result of estimating the regression equation of the single-index model. The SCL is a plot of the typical excess returns on a security over the risk-free rate as a function of the excess return on the market.
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Unformatted text preview: The slope of the SCL is the beta of the security, and they-intercept, alpha, is the excess return on the security when the excess market return is zero....
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