The CAL Provided by Combinations of One Month T-Bills and a Broad

question 12

Multiple Choice

The CAL provided by combinations of one month T-bills and a broad index of common stocks is called the ______.

• A) SML
• B) CAPM
• C) CML
• D) Total Return Line

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Definitions:

Consequent

The outcome or result in a conditional statement that logically follows from the antecedent, given the antecedent is true.

Hypothetical Proposition

A statement or proposition based on hypothesis rather than firm evidence, used in logical and philosophical arguments.

Converse

In logic and mathematics, the converse of a statement is formed by reversing its terms and predicate, often producing a different statement.

Disjunctive Proposition

A statement that uses 'or' to connect two or more alternatives, where at least one must be true.