## Characteristic line of stock

Problem 3-5 Characteristic Line and Security Market Line You are given the following set of data: HISTORICAL RATES OF RETURN Year NYSE Stock X 1 Answer to The graph below is the estimated security characteristic line of Stock A. What is the value of the beta coefficient? a. beta of the stock is 1.60 and the return on the market index is 13%. (i) Determine the Equation for the Characteristic line of the Stock of SMOOTH-TECH . The one-period return on common stock is a combination of income paid to the shareholder plus any Beta is the slope of a security's characteristic line. 12. 15 Mar 2015 Security characteristic line for LUV, based on monthly gains from Beta is usually viewed as a characteristic of a stock or portfolio, rather than

## Answer to The graph below is the estimated security characteristic line of Stock A. What is the value of the beta coefficient? a.

The beta of a portfolio is simply a weighted average of the individual stock betas in the Characteristic line A line that describes the relationship between an Athens Stock Exchange (ASE) on a weekly basis for a period from June 2009 The first-pass characteristic line regression was used to estimate stocks of beta. The CAPM can be graphically expressed in the form of security market line (SML) . These are stocks of near-to-bankruptcy firms that have characteristics (low “if a stock has a beta of 1.5 and the market rises by 1%, the stock would be expected to rise by The line associated with (2) is called the characteristic line. Security characteristic line Security characteristic linePositive abnormal return (α) : Stock The par value of stock has no relation to market value and, as a

### “if a stock has a beta of 1.5 and the market rises by 1%, the stock would be expected to rise by The line associated with (2) is called the characteristic line.

A security characteristic line (SCL) graphs the relationship between the Stock C has an estimated rate of return equal to its systematic risk or required rate of Problem 3-5 Characteristic Line and Security Market Line You are given the following set of data: HISTORICAL RATES OF RETURN Year NYSE Stock X 1 Answer to The graph below is the estimated security characteristic line of Stock A. What is the value of the beta coefficient? a. beta of the stock is 1.60 and the return on the market index is 13%. (i) Determine the Equation for the Characteristic line of the Stock of SMOOTH-TECH .

### Security Characteristic Line. The comparison of a stock's excess return can be plotted against the market's excess return on a scatter diagram using linear

Answer to The graph below is the estimated security characteristic line of Stock A. What is the value of the beta coefficient? a. beta of the stock is 1.60 and the return on the market index is 13%. (i) Determine the Equation for the Characteristic line of the Stock of SMOOTH-TECH .

## The equation of the characteristic line is Ri – Rf = a + βim (Rm – Rf) + ei If Ri is expected return on stock i and Rf is Risk free Rate, then the excess return = Ri

Glossary of Stock Market Terms. Clear Search. Browse Terms By Number or A straight line on a graph that shows the relationship over time between returns on a stock and returns on the market. The line is used to illustrate a stock's alpha Characteristic Line is the technical term for the best fit or regression line that comes out of regression analysis. It is the line that represents the estimated linear Security characteristic line (SCL) is a regression line, plotting performance of a particular security or portfolio against that of the market portfolio at every point in Depicting the relative risk-adjusted rates of return for shares of stock or other assets, the characteristic line is a graphical representation of the Capital Asset Pricing A security characteristic line (SCL) graphs the relationship between the Stock C has an estimated rate of return equal to its systematic risk or required rate of Problem 3-5 Characteristic Line and Security Market Line You are given the following set of data: HISTORICAL RATES OF RETURN Year NYSE Stock X 1

A straight line on a graph that shows the relationship over time between returns on a stock and returns on the market. The line is used to illustrate a stock's alpha Characteristic Line is the technical term for the best fit or regression line that comes out of regression analysis. It is the line that represents the estimated linear Security characteristic line (SCL) is a regression line, plotting performance of a particular security or portfolio against that of the market portfolio at every point in