Respuesta :
The Security characteristic line depicts the link between the excess return on the market portfolio (or a suitable proxy index) and the excess return on a specific asset.
The term "market portfolio" refers to a portfolio that includes the weighted total of each asset traded on the market, with weights assigned in accordance with their market presence and the essential presumption that these assets are endlessly divisible.
According to Richard Roll's criticism, this is only a theoretical idea because, in reality, a market portfolio for investment purposes would have to include every single asset that is currently available, including real estate, precious metals, stamp collections, jewelry, and anything else that has value because the theoretical market being discussed would be the global market.
Whether the items utilized for the market portfolio actually matter is a subject of some debate. It doesn't really matter, according to some authors.
Learn more about market portfolio here:
https://brainly.com/question/17165367
#SPJ4
