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Basic Question 1 of 5

A security characteristic line is ______

A. the security market line when expressed in terms of the required return and standard deviation of a security or a portfolio.
B. a graph of the required return on a security and its systematic risk.
C. the regression line between the excess return on a security and the excess return on the market portfolio.

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I passed! I did not get a chance to tell you before the exam - but your site was excellent. I will definitely take it next year for Level II.
Tamara Schultz

Tamara Schultz

Learning Outcome Statements

describe and demonstrate applications of the CAPM and the SML

CFA® 2025 Level I Curriculum, Volume 2, Module 2.