Use the Following Three Statements to Answer This Question

question 63

Multiple Choice

Use the following three statements to answer this question:
I.The Capital Market Line (CML) must always be upward sloping, and it predicts required returns.
II.The Capital Market Line (CML) is based on expected rates of return, so it is ex post.
III.The Capital Market Line (CML) slope is the Sharpe ratio.

• A)I, II, and III are correct.
• B)I, II, and III are incorrect.
• C)I and III are correct and II is incorrect.
• D)I is incorrect, II and III are correct.

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Definitions:

Interphalangeal

Pertaining to the joints between the phalanges, the bones in the fingers and toes.

Metacarpophalangeal

Refers to the joints between the metacarpal bones and the phalanges (fingers) of the hands, supporting movement such as bending.

Tibiotalar

Referring to the joint formed between the tibia (shinbone) and the talus (ankle bone), crucial for ankle movement.

Tarsometatarsal

Referring to the joint connections between the tarsal bones of the foot and the metatarsal bones of the forefoot.