Which of the Following Statements Is CORRECT?
A)The Slope of the CML

Multiple Choice

Which of the following statements is CORRECT?

A) The slope of the CML is ( $\hat { r }$ _M ? r_RF) /b_M.
B) All portfolios that lie on the CML to the right of ?_M are inefficient.
C) All portfolios that lie on the CML to the left of ?_M are inefficient.
D) The slope of the CML is ( $\hat { r }$ _M ? r_RF) /?_M.
E) The Capital Market Line (CML) is a curved line that connects the risk-free rate and the market portfolio.