What does the capital market line represent?
A)The highest attainable expected return for any given risk level that includes only efficient portfolios.
B)The frontier of efficient portfolios of risky assets.
C)The best return portfolio.
D)The lowest variance portfolios.

Question

Quizplus · Accepted Answer

The capital market line is the line that represents the highest attainable expected return for any given risk level that includes only efficient portfolios. It is used to determine the optimal portfolio that balances risk and return based on an investor's risk tolerance.

What Does the Capital Market Line Represent