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Which Statement Is True Regarding the Capital Market Line (CML)

Question 12

Multiple Choice

Which statement is 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 CML is the line from the risk-free rate through the market portfolio,is the best attainable capital allocation line,and it always has a positive slope.

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