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In the results of the earliest estimations of the security market line by Miller and Scholes (1972), it was found that the average difference between a stock's return and the risk-free rate was ________
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In the results of the earliest estimations of the security market line by Miller and Scholes (1972), it was found that the average difference between a stock's return and the risk-free rate was ________ to its nonsystematic risk and ________ to its beta.

User Hardik Mishra
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Answer:

Both non- systematic risk as well as beta are positively related

Step-by-step explanation:

The results of the estimations of the SML (Security Market Line) by Miller and Scholes year 1972, it was found that the average difference among the return of stock and the rate of risk free was positively related to the risk of non- systematic and also positively related to the beta.

User Anand Singh
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