The CML relates:
A) expected return to beta.
B) the risk-free rate to the market portfolio's rate of return.
C) risk to beta.
D) expected return to standard deviation.

Name: The CML relates: A) expected return to beta. B) the risk-free rate to the market portfolio's rate of return. C) risk to beta. D) expected return to standard deviation.
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Question

Quizplus · Accepted Answer

The Capital Market Line (CML) relates the expected return of a portfolio to its standard deviation, which is a measure of total risk.

The CML Relates