Security market line equation
(Redirected from SML equation)
Security market line equation (alternatively known as SML equation) is an equation that shows the relationship between risk as measured by beta and the required rates of return on individual securities.
Definitions
According to Fundamentals of Financial Management by Eugene F. Brigham and Joel F. Houston (15th edition),
- Security market line equation (SML equation). An equation that shows the relationship between risk as measured by beta and the required rates of return on individual securities.
Related concepts
- Financial management. A combination of enterprise efforts undertaken in order to procure and utilize monetary resources of the enterprise.
