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Security Market Line (SML)

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Uploaded by on Nov 4, 2008

The security market line (SML) plots the expected return of an asset (or portfolio) as a function of the asset's beta.

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  • @righpt2 i want to know it as well......

  • @WHITESNOWSKY It would imply that the security is either under or overpriced. If a security is ABOVE the sml, it's UNDERPRICED and if a security plots UNDER the sml, and it's OVERPRICED. But don't forget that this is just a model, and Beta isn't very reliable...

  • It didn't show how to plot...?

  • What is the formula for the covariance referenced starting at 6:00?

  • wow! im adding this one to the TutorMeTV site, lots of Finance students will benefit

  • i just wonder why do i not understand like that at lectures, they make it so confusing and complix, looking at this helped thanks

  • is there any other way to create the optimal port folio using just two expected returns and two betas? or would i just have to do it manually?

  • great vdo, thanx for the lecture man

    keep serving the ppl, good work

  • Thank you very much for this video. Imo you did a very good job explaining SML in just af few minuts. Thumbs up

  • not optimized

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