Which of the Following Is NOT a Major Difference Between

question 3

Multiple Choice

Which of the following is NOT a major difference between the capital market line (CML) and the capital asset pricing model (CAPM) ?

• A) Definitions of portfolio risk are based on systematic and total risk.
• B) One is related to the market portfolio, and the other is not.
• C) The number of calculations to determine risk is significantly greater for one method.
• D) One requires a tangency point on the efficient frontier, and the other does not.
• E) CML measures total risk by the standard deviation of the investment, while the SML considers only the systematic component of an investment's volatility.

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Definitions:

Person-Role Conflict

A type of conflict that occurs when an individual's values, beliefs, or behaviors are at odds with the expectations of their role in an organization.

Personal Values

The set of principles or beliefs that an individual views as important and guides their behavior and decision-making processes.

Personal Goals

Objectives or aspirations that an individual aims to achieve in their personal life.

Role Conflict

A situation where there are incompatible demands placed upon an individual, such that compliance with one would result in failing to comply with another.