Question:
Which of the following statements is false about the Security Market Lines (SML)?
| A. |
SML represents normal trade-off between return and risk |
B. |
The vertical distance of the security‘s plot on the graph from the SML is called the security‘s alpha |
C. |
SML is same as the characteristic line for any security |
D. |
Ex-post SMLs are used to evaluate the performance of portfolio managers |
Answer» c. SML is same as the characteristic line for any security |
| Note: |
The above multiple-choice question is for all general and Competitive Exams in India. |
