BEC SML and CAPM

  • Creator
    Topic
  • #201663
    Dantrick
    Participant

    Are the formulas for Security Market Line and Capital Asset Pricing Model the same equation? What is the difference or are they the same thing basically?

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  • #774420
    nadroj
    Participant

    The security market line is essentially a plot of the CAPM equation, with beta on the horizontal axis.

    #774421
    Dantrick
    Participant

    Is SML equation the same as CAPM = Risk free Rate + Beta * (Market – Risk free)

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