Question 235 SML, NPV, CAPM, risk
The security market line (SML) shows the relationship between beta and expected return.
Investment projects that plot on the SML would have:
(a) A positive NPV and should be accepted.
(b) A zero NPV.
(c) A negative NPV and should be rejected.
(d) A large amount of diversifiable risk.
(e) Zero diversifiable risk.
Copyright © 2014 Keith Woodward