Precisely (an important word here) why is the security market line upward sloping to the right?
Assume that the risk-free rate is 8% and the return to the market in 10% and beta is 2, what is the expected rate of return for this security?
What is this security's risk relative to the market? How do you know this?
(i) The security market line is upward sloping to the right since the slope begins... View the full answer