The slope of the security market line (SML) is represented by the market-risk premium. Therefore, the correct answer is:
The market-risk premium.
Multiple choice question.
The risk-free rate of return
The market-risk premium
The expected return on market
The expected return on the market plus the risk-free rate of return
1 answer
The slope of the security market line (SML) is represented by the market-risk premium. Therefore, the correct answer is:
The market-risk premium.