The intercept of the security market line is the reward-to-risk ...

[pane00]

The intercept of the security market line is the reward-to-risk ratio for taking on units of systematic risk.
 
  Indicate whether the statement is true or false.

Question 2

In the EOQ model, carrying costs of inventory include
 
  A) the required rate of return on inventory.
  B) wages for warehouse workers.
  C) costs associated with inventory shrinkage.
  D) B and C.
  E) all of the above.

[ErinKing]

Answer to Question 1

Answer: FALSE
Explanation: The SLOPE of the security market line is the reward-to-risk ratio for taking on units of systematic risk.

Answer to Question 2

D