Which of the Following Statements Is CORRECT?
A) the Slope $\tilde r$

question 3

Multiple Choice

Which of the following statements is CORRECT?

• A) The slope of the CML is (
• \(\tilde r\) _M ? r_RF)/b_M.
• B) All portfolios that lie on the CML to the right of ?_M are inefficient.
• C) All portfolios that lie on the CML to the left of ?_M are inefficient.
• D) The slope of the CML is (
• \(\tilde{r}\) _M ? r_RF)/?_M.
• E) The Capital Market Line (CML) is a curved line that connects the risk-free rate and the market portfolio.

---

Definitions:

Supply Curves

Graphical representations of the relationship between the price of goods and the quantity that producers are willing to supply.

Excise Tax

A tax levied on specific goods, services, or transactions, often to discourage their use or generate revenue.

Government Salaries

The remuneration received by individuals employed by the government, including wages, benefits, and allowances.

Property Tax

A tax levied by local governments on real estate properties, based on the assessed value of the property, to fund public services like education and infrastructure.