Security characteristic line


Security characteristic line

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.

Security Characteristic Line

A line on a graph where one axis is the excess return on a security over the risk-free return and the other axis is the excess return of the market in general. The slope of the security characteristic line is its beta. See also: Markowitz portfolio theory.