Multiple Choice
Which statement is true regarding the capital market line (CML) ?I) The CML is the line from the risk-free rate through the market portfolio.II) The CML is the best attainable capital allocation line.III) The CML is also called the security market line.IV) The CML always has a positive slope.
A) I only
B) II only
C) III only
D) IV only
E) I, II, and IV
Correct Answer:
Verified
Correct Answer:
Verified
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