Question

Characteristics regression line and significance of beta

Answer 1

The y-axis on the chart measures the excess return of the security. Excess return is measured against the risk-free rate of return. The x-axis on the chart measures the market's return in excess of the risk free rate. ... The slope of the characteristic line is the security's systematic risk, orbeta.

Answer 2

Answer:

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• The y-axis on the chart measures the excess return of the security. Excess return is measured against the risk-free rate of return. The x-axis on the chart measures the market's return in excess of the risk free rate. ... The slope of the characteristic line is the security's systematic risk, orbeta.

Step-by-step explanation:

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