Security characteristic line

Definition:

A plot on a graph of the excess return on a security over the risk-free rate as a function of the excess return on the market. The slope of this line is the security's beta.

Investing Essentials


Copyright © 2011 Campbell R. Harvey, Professor of Finance, Fuqua School of Business at Duke University

Term of the Day

Across the board

Movement or trend in the stock market that causes all stocks in all sectors to move in the same direction.

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