Which of the Following Statements Is CORRECT?
A) the Capital $\hat{r}$

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 ( $\hat{r}$ M - rRF) /bM.
C) All portfolios that lie on the CML to the right of $\sigma$ M are inefficient.
D) All portfolios that lie on the CML to the left of $\sigma$ M are inefficient.
E) The slope of the CML is ( $\hat{r}$ M - rRF) / $\sigma$ M..