Which of the Following Statements Is CORRECT

question 34

Multiple Choice

Which of the following statements is CORRECT?

• A) the slope of the cml is (m- rrf)/bm.
• B) all portfolios that lie on the cml to the right of σm are inefficient.
• C) all portfolios that lie on the cml to the left of σm are inefficient.
• D) the slope of the cml is (m - rrf)/σm.
• 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:

Sill

A tabular igneous intrusion that parallels layers or other planar structures of the surrounding rock and which usually has a subhorizontal orientation.

Laccolith

A bulge-shaped igneous body that has domed and tilted overlying layers and that is observed or interpreted to have a relatively flat floor.

Felsic Magmas

Magma that is high in silica and light in color, which forms rocks such as granite and rhyolite upon cooling.

Intermediate

A term used to describe entities or phenomena that fall in the middle of a specified range or scale, often used in geological contexts to describe rocks or volcanic activities with properties between felsic and mafic.