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

question 27

Multiple Choice

Which of the following statements is CORRECT?

• A) The slope of the CML is ( 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 ( M - r RF )/ \(\sigma\) M .
• E) The Capital Market Line (CML) is a curved line that connects the risk-free rate and the market portfolio.

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Definitions:

Reliable Way

A method or approach that consistently produces accurate or dependable results.

Critical Thinker

An individual who engages in analysis, evaluation, and synthesis of information in order to form a logical and objective judgment.

Self-Contradictory Claims

Statements that contain a logical inconsistency or contradiction within themselves.

Self-Contradictory Claim

A statement that inherently contains contradictory elements or assertions, making it logically impossible.