The set of portfolio choice between the risk-free asset and the market portfolio is called the
A)asset line.
B)capital market line.
C)risk-free line.
D)borrowing-lending line.

Question

Quizplus · Accepted Answer

The capital market line represents the set of efficient portfolios that optimize the risk-return tradeoff between the risk-free asset and the market portfolio. It provides the highest return for a given level of risk and is the best choice for investors seeking to maximize their risk-adjusted returns.

The Set of Portfolio Choice Between the Risk-Free Asset and the Market