Which of these is the line on a graph of return and risk (standard deviation) from the risk-free rate through the market portfolio?
A) capital asset pricing line
B) capital market line
C) efficient market line
D) efficient market hypothesis

Question

Quizplus · Accepted Answer

The Capital Market Line (CML) represents the line on a graph of return and risk (standard deviation) from the risk-free rate through the market portfolio. It illustrates the risk-return trade-off for efficient portfolios, showing that higher expected returns come with higher expected risk.

Which of These Is the Line on a Graph of Return