The CAL provided by combinations of one month T-bills and a broad index of common stocks is called the ______.
A) SML
B) CAPM
C) CML
D) Total Return Line

Question

Quizplus · Accepted Answer

The CAL provided by combinations of one month T-bills and a broad index of common stocks is called the Capital Market Line (CML). The SML and CAPM refer to the relationship between a security's expected return and its systematic risk, while the Total Return Line is not a commonly used term in finance.

The CAL Provided by Combinations of One Month T-Bills and a Broad