The Portfolio Expected Returns, Portfolio Beta and Slope of SML. Introduction : Security Market Line (SML) is a image demonstration of CAPM ( Capital Asset Pricing Model ). It demonstrates the connection between the expected return of a security and its risk estimated by its beta coefficient. Expected Return is a process of estimating the profits and losses an investor earns through the expected rate of returns. Standard deviation is apportioned of distribution of a collection of figures from its mean.

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Chapter 11, Problem 17QP

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To determine: The Portfolio Expected Returns, Portfolio Beta and Slope of SML.

Introduction: Security Market Line (SML) is a image demonstration of CAPM (Capital Asset Pricing Model). It demonstrates the connection between the expected return of a security and its risk estimated by its beta coefficient. Expected Return is a process of estimating the profits and losses an investor earns through the expected rate of returns. Standard deviation is apportioned of distribution of a collection of figures from its mean.

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