security characteristic line
- security characteristic line
Financial and business terms.
2012.
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Security characteristic line — A plot of the excess return on a security over the risk free rate as a function of the excess return on the market. The New York Times Financial Glossary … Financial and business terms
Characteristic Line — A line formed using regression analysis that summarizes a particular security or portfolio s systematic risk and rate of return. The rate of return is dependent on the standard deviation of the asset s returns and the slope of the characteristic… … Investment dictionary
Security Market Line - SML — A line that graphs the systematic, or market, risk versus return of the whole market at a certain time and shows all risky marketable securities. Also refered to as the characteristic line . The SML essentially graphs the results from the capital … Investment dictionary
characteristic line — The market model applied to a single security; a regression of security returns on the benchmark return. The slope of the regression line is a security s beta. Bloomberg Financial Dictionary … Financial and business terms
Characteristic line — The market model applied to a single security. The slope of the line is a security s beta. The New York Times Financial Glossary … Financial and business terms
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Market portfolio — is a portfolio consisting of a weighted sum of every asset in the market, with weights in the proportions that they exist in the market, with the necessary assumption that these assets are infinitely divisible.[1] Richard Roll s critique… … Wikipedia