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Relationship between risk and required return is classified as

This question belongs to Commerce Financial Management
Financial Management
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Relationship between risk and required return is classified as

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Correct Answer: Option A
Relationship between risk and required return is classified as security market line. The security market line (SML) is a line drawn on a chart that serves as a graphical representation of the capital asset pricing model (CAPM), which shows different levels of systematic, or market, risk of various marketable securities plotted against the expected return of the entire market at a given point in time.
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