Which statement is true regarding the Capital Market Line (CML)?
A)The CML is the line from the risk-free rate through the market portfolio.
B)The CML is the best attainable capital allocation line.
C)The CML is also called the security market line.
D)The CML always has a positive slope.
E)A,B,and D are true.

Question

Quizplus · Accepted Answer

The CML is the line from the risk-free rate through the market portfolio, it is the best attainable capital allocation line, and it always has a positive slope.

Which Statement Is True Regarding the Capital Market Line (CML)