Select the incorrect statement regarding the CML. The CML:
A) is an equilibrium relationship for efficient portfolios and individual securities.
B) represents the risk-return tradeoff for efficient portfolios.
C) has an intercept that is the reward to investors for deferring consumption.
D) relies on standard deviation as the measure of risk.

Question

Quizplus · Accepted Answer

The CML is an equilibrium relationship for efficient portfolios only, not individual securities.

Select the Incorrect Statement Regarding the CML