The Slope of the CML Is The

question 51

Multiple Choice

The slope of the CML is the:

• A) standard deviation of the market portfolio.:::::
• B) market price of risk for efficient portfolios.
• C) risk-free rate.
• D) risk premium for the market portfolio.

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Definitions:

Fair Market Value

An estimate of the market value of a property or asset, based on what a knowledgeable, willing, and unpressured buyer would likely pay to a knowledgeable, willing, and unpressured seller.

Statute of Frauds

A legal concept that requires certain types of contracts to be in writing and signed by the parties involved to be enforceable.

Orally Agree

To come to a mutual decision or arrangement through spoken words rather than written documents.

Contract Rescission

The legal act of canceling a contract and returning the parties involved to their positions before the contract was signed.