# Security characteristic line

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Language: en

Published: 2026-10-25T22:13:50.604Z

Updated: 2026-10-25T22:13:50.604Z

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 time. The SCL is plotted on a graph where the Y-axis is the excess return on a security over the risk-free return and the X-axis is the excess return of the market in general. The slope of the SCL is the security's beta

## Key facts

## Overview

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 time. The SCL is plotted on a graph where the Y-axis is the excess return on a security over the risk-free return and the X-axis is the excess return of the market in general. The slope of the SCL is the security's beta, and the intercept is its alpha.

## Formula

S           C           L

:

R

i             ,             t

−

R

f

=

α

i

+

β

i

(

R

M             ,             t

−

R

f

)         +

## See also

Security market line Capital allocation line Capital market line Modern portfolio theory

## External links

Security characteristic line calculator CAPM and the Characteristic Line Chapter 7 CAPM \{link doesn't work\} Chapter 13 \{link doesn't work\}

## Sources

- Security characteristic line · Wikipedia: https://en.wikipedia.org/?curid=29150511

Source: Wikipedia contributors — https://en.wikipedia.org/?curid=29150511&oldid=1279406933

Licence: CC BY-SA 4.0 — https://creativecommons.org/licenses/by-sa/4.0/

Adaptation notice: Reformatted for XPay; the source may be abridged, restructured or translated. Consult the cited revision for the original.