Which statement is not 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) The risk measure for the CML is standard deviation.

Question

Quizplus · Accepted Answer

The CML (Capital Market Line) and the SML (Security Market Line) are different concepts in finance. The CML represents the risk-return trade-off for efficient portfolios, while the SML represents the expected return of assets as a function of their systematic, or market, risk.

Which Statement Is Not True Regarding the Capital Market Line