The line on a graph of return and risk (standard deviation) from the risk-free rate through the market portfolio is ________.
A) capital market line
B) expected return
C) security market line
D) financial leverage

Question

Quizplus · Accepted Answer

The capital market line (CML) represents the risk-return trade-off in the capital asset pricing model (CAPM) for efficient portfolios, showing the relationship between the expected return of a portfolio and its risk (standard deviation), starting from the risk-free rate and extending through the market portfolio.

The Line on a Graph of Return and Risk (Standard