# Security characteristic line

[[Image:SCL-plot.PNG|320px|thumb|Security characteristic linewikipedia

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### Beta (finance)

**betabeta coefficient beta coefficient**

The slope of the SCL is the security's beta, and the intercept is its alpha.

The regression line is then called the security characteristic line (SCL).

### Market portfolio

**realized returnoverall marketportfolio**

Security characteristic line (SCL) is a regression line, plotting performance of a particular security or portfolio against that of the market portfolio at every point in time.

### Alpha (finance)

**alphaexcess returnoutperform market averages**

The slope of the SCL is the security's beta, and the intercept is its alpha.

### Modern portfolio theory

**portfolio theoryportfolio analysismean-variance**

where α i is called the asset's alpha, β i is the asset's beta coefficient and SCL is the security characteristic line.

### Regression analysis

**regressionmultiple regressionregression model**

Security characteristic line (SCL) is a regression line, plotting performance of a particular security or portfolio against that of the market portfolio at every point in time.

### Risk-free interest rate

**risk-free raterisk free raterisk-free asset**

The SCL is plotted on a graph where the Y-axis is the excess return on a security over the risk-free return and the X-axis is the excess return of the market in general.

### Outline of finance

**List of finance topicsList of valuation topicsFinance**