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The slope of the security market line is the: Multiple Choice risk-free interest rate. market risk...

The slope of the security market line is the:

Multiple Choice

  • risk-free interest rate.

  • market risk premium.

  • beta coefficient.

  • reward-to-risk ratio.

  • portfolio weight.

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Answer #1

market risk premium.

The market risk premium is defined as the slope of the security market line which is nothing but the difference between the expected return on a market portfolio and the risk free rate as well.

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