The Capital Market Line (CML) as Defined by the Capital

question 24

Multiple Choice

The capital market line (CML) as defined by the capital asset pricing model is characterized by all of the following except:

• A)a straight line tangent to the efficient frontier.
• B)a straight line which includes the rate of return on a risk-free asset.
• C)a point on the efficient frontier above which higher returns can be generated by borrowing funds without assuming more risk.
• D)All of the above are characteristics of the capital market line

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