The Security Market Line (SML) is a visual representation of the Capital Asset Pricing Model that plots the expected return of assets against their beta to assess if an asset is fairly valued based on its risk-return tradeoff.

Authors

• Person: Not available Organization: Pressbooks
  Chapter 8 – Risk and Return – Fundamentals of Finance

Sources

• Chapter 8 – Risk and Return – Fundamentals of Finance pressbooks.pub Pressbooks via serper

Referenced by nodes (2)

• risk-return trade-off concept
• expected return concept