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When Markets Are in Equilibrium,the CML Is Upward Sloping

Question 50

Multiple Choice

When markets are in equilibrium,the CML is upward sloping:


A) because it shows the optimum combination of risky securities.
B) because the price of risk must always be positive.
C) because it contains all securities weighted by their market values.
D) because investors expect returns to increase over time.

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