Q741
A line which shows relationship between an expected return and risk on efficient portfolio is considered as
A.
efficient market line
B.
attributable market line
C.
capital market line
AnswerD.
security market line
Answer: Option C
Solution
Answer: Option C
Solution:
A line which shows relationship between an expected return and risk on efficient portfolio is considered as capital market line. Capital market line (CML) is a graph that reflects the expected return of a portfolio consisting of all possible proportions between the market portfolio and a risk-free asset.