Examlex
Which of the following statements is true?
Fully Informed
A state or condition where all relevant information is known to all parties involved.
Security-market Line
A graphical representation of the relationship between expected return and beta (systematic risk) of an investment.
Capital-market Line
A line on a graph representing the rates of return for efficient portfolios that optimally balance risk and return, based on the risk-free rate and the market portfolio.
Capital-allocation Line
A line on a graph that represents the risk-and-return profiles of risky assets, showing the possible combinations of risk and return that are available.
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