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Which of the Following Represents the Capital Market Line (CML) σ\sigma

Question 18

Multiple Choice

Which of the following represents the capital market line (CML) ? (RT and σ\sigma T are the mean and standard deviation of the tangency portfolio's return,respectively. σ\sigma P is the standard deviation of the portfolio,and rf is the return of the risk-free asset.)


A)  Which of the following represents the capital market line (CML) ? (R<sub>T</sub> and  \sigma <sub>T</sub> are the mean and standard deviation of the tangency portfolio's return,respectively. \sigma <sub>P</sub> is the standard deviation of the portfolio,and r<sub>f</sub> is the return of the risk-free asset.)  A)    B)    C)    D)
B)  Which of the following represents the capital market line (CML) ? (R<sub>T</sub> and  \sigma <sub>T</sub> are the mean and standard deviation of the tangency portfolio's return,respectively. \sigma <sub>P</sub> is the standard deviation of the portfolio,and r<sub>f</sub> is the return of the risk-free asset.)  A)    B)    C)    D)
C)  Which of the following represents the capital market line (CML) ? (R<sub>T</sub> and  \sigma <sub>T</sub> are the mean and standard deviation of the tangency portfolio's return,respectively. \sigma <sub>P</sub> is the standard deviation of the portfolio,and r<sub>f</sub> is the return of the risk-free asset.)  A)    B)    C)    D)
D)  Which of the following represents the capital market line (CML) ? (R<sub>T</sub> and  \sigma <sub>T</sub> are the mean and standard deviation of the tangency portfolio's return,respectively. \sigma <sub>P</sub> is the standard deviation of the portfolio,and r<sub>f</sub> is the return of the risk-free asset.)  A)    B)    C)    D)

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