A straight line formed on a graph which represents the relation over time between returns on a stock and a return on the market. The line is used to show a stock's vertical intercept (alpha) and the line's slope (beta) and to highlight the difference between unsystematic and systematic risks.
Related information about characteristic line:
- Characteristic Line Definition | Investopedia
A line formed using regression analysis that summarizes a particular security or portfolio's systematic risk and rate of return. The rate of return is dependent on ...
- Security characteristic line - Wikipedia, the free encyclopedia
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 ...
- characteristic line - Financial Dictionary - The Free Dictionary
The market model applied to a single security; a regression of security returns on the benchmark return. The slope of the regression line is a security's beta.
- CAPM and the Characteristic Line
CAPM and the Characteristic Line. The Characteristic Line. Total risk of any asset can be assessed by measuring variability of its returns; Total risk can be ...
- Characteristic Line: Definition from Answers.com
Characteristic Line A line formed using regression analysis that summarizes a particular security or portfolio's systematic risk and rate of return.
- characteristic line - Invest Definition
characteristic line definition: A straight line on a graph that shows the relationship over time between returns on a stock and returns on the market. The line is ...
- What is characteristic line? definition and meaning
Definition of characteristic line: A straight line formed on a graph which represents the relation over time between returns on a stock and a return on the market.
- What Is a Characteristic Line?
In financial markets theory, a characteristic line graphically represents the relationship between the rates of return of a financial security or other asset, such as a ...