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    Financial Management Theory and Practice Study Set 3
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    Exam 7: Risk, Return, and the Capital Asset Pricing Model
  5. Question
    The Y-Axis Intercept of the SML Represents the Required Return
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The Y-Axis Intercept of the SML Represents the Required Return

Question 22

Question 22

True/False

The Y-axis intercept of the SML represents the required return of a portfolio with a beta of zero, or the risk-free rate.

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