110. In the context of the security market line (SML), which of the following statements best
characterizes the relationship between risk and the required rate of return for an
investment?
A. The slope of the SML indicates the risk per unit of return for a given individual
investor.
B. A parallel shift in the SML occurs in response to a change in the attitudes of investors
toward risk.
C. A movement along the SML shows a change in the risk characteristics of a specific
investment, such as a change in its business risk or financial risk.
D. A change in the slope of the SML reflects a change in market conditions, such as ease
or tightness of monetary policy or a change in the expected rate of inflation.

正确答案是Ｃ．

关于答案Ａ．如果将答案改这个样子是否就是正确的了呢？The slope of the SML indicates the unit of return per risk for a given individual investor.

关于答案Ｃ．我是这样理解的The SML is a graphic representation of the relationship between expected return and beta. Beta measures systematic risk. As a result, a movement along the SML is a change in the value of beta. A changed beta shows a change in the risk characteristics of a specific investment, such as a change in its business risk or financial risk.

请问我的理解是正确的吗？

[此贴子已经被作者于2007-11-24 21:10:24编辑过]