The capital market line can be used to determine the expected return on any portfolio based on:
A)unsystematic risk.
B)the degree of risk on that portfolio.
C)the market rate of return.
D)None of the above

Question

Quizplus · Accepted Answer

The capital market line (CML) represents portfolios that optimally combine risk and return, and it is used to determine the expected return based on the total risk (standard deviation) of the portfolio.

The Capital Market Line Can Be Used to Determine the Expected