Start learning →

On the security market line, the intercept equals which rate?

ARisk-free rate
BInflation rate
CDividend yield
DMarket return
Answer & Solution
Correct answer: A. Risk-free rate
At zero beta the expected return is just the risk-free rate, which is where the line crosses the vertical axis.
Practise this question with Quill — CA Final →

Keep practising Dividend Discount Model

Browse all Dividend Discount Model questions for CA Final, or explore more Strategicfinancialmanagement topics.

Start a Dividend Discount Model lesson →
Related questions