The Capital Market Line (CML) Uses ____ as a Risk

question 146

Multiple Choice

The capital market line (CML) uses ____ as a risk measurement, whereas the capital asset pricing model (CAPM) uses ____.

• A) beta; total risk
• B) standard deviation; total risk
• C) standard deviation; systematic risk
• D) unsystematic risk; total risk
• E) systematic risk; beta

---

Definitions:

Bone Density

A measure of the amount of minerals (primarily calcium and phosphorous) contained in a certain volume of bone, used to diagnose osteoporosis.

Fracture Risk

The likelihood of experiencing a bone break or fracture, influenced by factors such as bone density, age, gender, and lifestyle habits.

Fracture

A break, crack, or severe bend in a bone, often caused by accidents, sports injuries, or bone weakness.

Strain

In physical science, strain refers to the deformation of materials in response to stress. In a broader context, it can also denote physical or mental pressure.