Select the Incorrect Statement Regarding the CML

question 42

Multiple Choice

Select the incorrect statement regarding the CML. The CML:

• A) is an equilibrium relationship for efficient portfolios and individual securities.
• B) represents the risk-return tradeoff for efficient portfolios.
• C) has an intercept that is the reward to investors for deferring consumption.
• D) relies on standard deviation as the measure of risk.

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Definitions:

Crisis Management Plans

Strategies and procedures developed by an organization or entity to address and manage a significant emergency or threat effectively.

Communicating

The process of exchanging information and understanding between two or more individuals, through verbal, non-verbal, or written methods.