__________ is a graphic depiction of CAPM and describes the market price of risk in capital markets.
The Security Market Line (SML) depicts the CAPM relationship between expected return and systematic risk measured by beta. The Capital Market Line (CML) instead relates…
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__________ is a graphic depiction of CAPM and describes the market price of risk in capital markets.
Answer and explanation
Correct answer B
The Security Market Line (SML) depicts the CAPM relationship between expected return and systematic risk measured by beta. The Capital Market Line (CML) instead relates expected return to total risk for efficient portfolios.
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Maharashtra and Goa SET (MH SET)