Which of the Following Statements About the Difference Between the SML

question 38

Multiple Choice

Which of the following statements about the difference between the SML and the CML is true?

• A)The intercept of the CML is the origin,whereas the intercept of the SML is RF.
• B)The CML applies to efficient portfolios,whereas the SML applies to all
• Portfolios or securities.
• C)The CML can be downward sloping,whereas that is impossible for the SML.
• D)The CML and the SML are essentially the same except for the price of risk.

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Definitions:

Food Chains

A series of organisms each dependent on the next as a source of food, showing the flow of energy and nutrients from one entity to another.

Facilitator of Succession

An organism or factor that catalyzes ecological succession, ensuring the progression from one ecological community to another, leading to increased biodiversity.

Sexual Maturity

The stage in an organism's life cycle when it becomes capable of reproduction.