According to the security market line, a security with a beta of 1.5 should provide a risk premium that is _________ times the risk premium existing for the market as a whole.

Respuesta :

Answer: 1.5

Explanation: Security market line shows different levels of systematic, or market, risk of various marketable securities plotted against the expected return of the entire market at a given point in time. According to the security market line, a security with a beta of 1.5 should provide a risk premium that is 1.5 times the risk premium existing for the market as a whole.