Concept
Version 7
Created by Boundless
Defining the Security Market Line
![The equation that defines the security market line.](../../../../../../../../../figures.boundless-cdn.com/11936/full/f0c22f3d8b5b08be34f38cd9f8.jpg)
The equation that defines the security market line.
Look at the equation and remember that old formula of a line: y = mx + b. In this case it looks rearranged, like y = b + mx, but the real question is what do the slope and y-intercept actually represent?
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