Multiple Choice
Which of the following statements is CORRECT?
A) The Capital Market Line (CML) is a curved line that connects the risk-free rate and the market portfolio.
B) The slope of the CML is ( M - rRF) /bM.
C) All portfolios that lie on the CML to the right of M are inefficient.
D) All portfolios that lie on the CML to the left of M are inefficient.
E) None of the above statements is correct.
Correct Answer:
Verified
Correct Answer:
Verified
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