Which Statement Is True Regarding the Capital Market Line (CML)

question 130

Multiple Choice

Which statement is true regarding the Capital Market Line (CML) ?

• A)The CML is the line from the risk-free rate through the market portfolio.
• B)The CML is the best attainable capital allocation line.
• C)The CML is also called the security market line.
• D)The CML always has a positive slope.
• E)A,B,and D are true.

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