The intercept of security characteristic line (SCL) is:?

A. Beta.

B. RM – RF.

C. Jensen’s alpha..

Question added by Shahbaz Hayder , Group Head of Finance , Sharif Group of Companies
Date Posted: 2015/07/11

Upvote (2) Views (1) Followers (4) Answers (4) Report Question

by Shazia Anees , Assistant Manager Finance , Arham Trading Company

C. Jensen’s alpha.=====================

Upvote (2)

by Shahbaz Hayder , Group Head of Finance , Sharif Group of Companies

Option C is the right answer.

C) Jensen's alpha. According to the Security Characteristic line, the slope of the SCL is the security’s beta, and the intercept is its alpha.

by Zehab Osman , Accountant , Aldar Consultancy Co.

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