When using 60 months of data to calculate beta, the name of the regression line is:...

Question

Question

When using 60 months of data to calculate beta, the name of the regression line is:

Group of answer choices a. The Capital Market Line (CML). b. Security Market Line (SML) c. The Market Risk Premium. d. The Characteristic Line

business finance

Answer 1

Answer #1

option D: Characteristic line

---- Characteristic line is used to estimate beta by regressing the returns of the stocks against market returns after accounting for risk free rate

Answer 2

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