Which of the Following Statements About the Difference Between the SML

question 23

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 while the intercept of the SML is RF.
• B)CML consists of efficient portfolios,while the SML is concerned with all portfolios or securities.
• C)CML could be downward sloping while that is impossible for the SML.
• D)CML and the SML are essentially the same except in terms of the securities represented.

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Definitions:

Societal Promotions

Marketing activities aimed at promoting social causes or contributing to societal goals rather than focusing solely on direct sales.

Compulsory Licence

A directive by the Commissioner of Patents requiring the patentee to license others to produce a product for the general benefit of the public.

Beneficiary

A person designated to receive benefits from an insurance policy, trust, or will upon certain conditions, such as the death of the policyholder.

Patent Holder

An individual or entity that legally owns the rights to an invention or process granted by a patent.