Scribd Logo
Upload

Welcome to Scribd!

  • Security Market Line: Risky Asset Risk Free Asset

    Uploaded by

    DivyamSharma
    4 views6 pages
    sml

    Original Title

    Sml

    Copyright

    © © All Rights Reserved

    Available Formats

    XLSX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Report this Document
    sml

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    4 views6 pages

    Security Market Line: Risky Asset Risk Free Asset

    Uploaded by

    DivyamSharma
    sml

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 6

    SECURITY MARKET LINE

    RISKY ASSET
    EXPECTED RETURN FROM THE ASSET
    BETA

    2.797
    1.617

    % OF PORTFOLIO INVESTMENT IN RISKY ASSET


    0.00
    0.05
    0.10
    0.15
    0.20
    0.25
    0.30
    0.35
    0.40
    0.45
    0.50
    0.55
    0.60
    0.65
    0.70
    0.75
    0.80
    0.85
    0.90

    PORTFOLIO BETA
    0.000
    0.081
    0.162
    0.243
    0.323
    0.404
    0.485
    0.566
    0.647
    0.728
    0.809
    0.889
    0.970
    1.051
    1.132
    1.213
    1.294
    1.374
    1.455

    RISK FREE ASSET


    EXPECTED RETURN
    BETA

    PORTFOLIO EXPECTED RETURN (ER)


    0.091
    0.226
    0.362
    0.497
    0.632
    0.768
    0.903
    1.038
    1.174
    1.309
    1.444
    1.579
    1.715
    1.850
    1.985
    2.121
    2.256
    2.391
    2.526

    CURVE SLOPE
    1.67
    1.67
    1.67
    1.67
    1.67
    1.67
    1.67
    1.67
    1.67
    1.67
    1.67
    1.67
    1.67
    1.67
    1.67
    1.67
    1.67
    1.67
    1.67

    0.091
    0

    0.95
    1.00

    1.536
    1.617

    SLOPE OF LINE

    1.67

    2.662
    2.797

    1.67
    1.67

    SECURITY MARKET LINE


    RISKY ASSET
    EXPECTED RETURN FROM THE ASSET
    BETA

    2.644
    0.09875

    % OF PORTFOLIO INVESTMENT IN RISKY ASSET


    0.00
    0.05
    0.10
    0.15
    0.20
    0.25
    0.30
    0.35
    0.40
    0.45
    0.50
    0.55
    0.60
    0.65
    0.70
    0.75
    0.80
    0.85
    0.90
    0.95
    1.00

    PORTFOLIO BETA
    0.000
    0.005
    0.010
    0.015
    0.020
    0.025
    0.030
    0.035
    0.040
    0.044
    0.049
    0.054
    0.059
    0.064
    0.069
    0.074
    0.079
    0.084
    0.089
    0.094
    0.099

    SLOPE OF LINE

    25.85

    TY MARKET LINE
    RISK FREE ASSET
    EXPECTED RETURN
    BETA

    PORTFOLIO EXPECTED RETURN (ER)


    0.091
    0.219
    0.346
    0.474
    0.602
    0.729
    0.857
    0.985
    1.112
    1.240
    1.368
    1.495
    1.623
    1.751
    1.878
    2.006
    2.133
    2.261
    2.389
    2.516
    2.644

    CURVE SLOPE
    25.85
    25.85
    25.85
    25.85
    25.85
    25.85
    25.85
    25.85
    25.85
    25.85
    25.85
    25.85
    25.85
    25.85
    25.85
    25.85
    25.85
    25.85
    25.85
    25.85
    25.85

    0.091
    0

    SECURITY MARKET LINE


    RISKY ASSET
    EXPECTED RETURN FROM THE ASSET
    BETA

    1.506
    0.05461

    % OF PORTFOLIO INVESTMENT IN RISKY ASSET


    0.00
    0.05
    0.10
    0.15
    0.20
    0.25
    0.30
    0.35
    0.40
    0.45
    0.50
    0.55
    0.60
    0.65
    0.70
    0.75
    0.80
    0.85
    0.90
    0.95
    1.00

    PORTFOLIO BETA
    0.000
    0.003
    0.005
    0.008
    0.011
    0.014
    0.016
    0.019
    0.022
    0.025
    0.027
    0.030
    0.033
    0.035
    0.038
    0.041
    0.044
    0.046
    0.049
    0.052
    0.055

    SLOPE OF LINE

    25.91

    Y MARKET LINE
    RISK FREE ASSET
    EXPECTED RETURN
    BETA

    PORTFOLIO EXPECTED RETURN (ER)


    0.091
    0.162
    0.233
    0.303
    0.374
    0.445
    0.516
    0.586
    0.657
    0.728
    0.799
    0.869
    0.940
    1.011
    1.082
    1.152
    1.223
    1.294
    1.365
    1.435
    1.506

    CURVE SLOPE
    25.91
    25.91
    25.91
    25.91
    25.91
    25.91
    25.91
    25.91
    25.91
    25.91
    25.91
    25.91
    25.91
    25.91
    25.91
    25.91
    25.91
    25.91
    25.91
    25.91
    25.91

    0.091
    0

    You might also like