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Select the Incorrect Statement Regarding the CML

Question 3

Multiple Choice
Select the incorrect statement regarding the CML.
A)The CML is an equilibrium relationship for efficient portfolios and individual securities.
B)The CML represents the risk-return tradeoff for efficient portfolios.
C)The intercept of the CML is the reward to investors for deferring consumption.
D)The CML relies on standard deviation as the measure of risk.

Select the incorrect statement regarding the CML.


A) The CML is an equilibrium relationship for efficient portfolios and individual securities.
B) The CML represents the risk-return tradeoff for efficient portfolios.
C) The intercept of the CML is the reward to investors for deferring consumption.
D) The CML relies on standard deviation as the measure of risk.

Correct Answer:

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