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Market Line Definition and Explanation PDF Download

Learn Market Line definition in hrm with explanation to study “What is Market Line”. Study market line explanation with HRM terms to review HRM course for online MBA programs.

Market Line Definition:

  • Graph line that shows the relationship between job value as determined by job evaluation points and job value as determined by pay survey rates.

    Human Resource Management by Robert L. Mathis, John H. Jackson



Market Line Explanation:

The security market line (SML) is a line drawn on an outline that fills in as a graphical portrayal of the capital resource valuing model (CAPM), which shows various degrees of deliberate, or market, danger of different attractive protections plotted against the normal return of the whole showcase at a given point in time. Otherwise called the "trademark line," the SML is a visual of the capital resource evaluating model (CAPM), where the x-pivot of the diagram speaks to hazard regarding beta, and the y-hub of the outline speaks to anticipated return. The market chance premium of a given security is dictated by where it is plotted on the outline in connection to the SML.

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