Security characteristic line

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

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.