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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Definitions:

Cultural Diffusion

The spread of cultural beliefs and social activities from one group to another.

Inventions

Novel creations or solutions that address specific problems or needs, often resulting in new products, services, or processes.

Interdependent Self-Construal

Viewing self primarily in terms of how one relates to others and contributes to the greater whole.

Independent Self-Construal

Viewing self as a unique active agent serving one’s own goals.