Parent Category: calculators Category: Financial Calculators Security Market Line Calculator The Security market line Calculator (SML Calculator) helps calculating the expected return Security market line (SML) is the representation of the capital asset pricing model. It displays the expected rate of return of an individual security as a function of systematic, non-diversifiable risk According to the Security Market Line: S M L : E ( R i ) = R f + β i [ E ( R M ) − R f ] {\displaystyle \mathrm {SML} :E(R_{i})=R_{f}+\beta _{i}[E(R_{M})-R_{f}]\,} where: E(Ri) is an expected return on security E(RM) is an expected return on market portfolio M β is a nondiversifiable or systematic risk RM is a market rate of return Rf is a risk-free rate The expected return on market portfolio M % The Beta The risk-free rate %
