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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. 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:
  1. 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 ...
     
  2. 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 ...
     
  3. 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.
     
  4. 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 ...
     
  5. 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.
     
  6. 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 ...
     
  7. 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.
     
  8. 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 ...