Vidyalelo
Management · Q781

International Finance and Treasury

Graduate and Post Graduate · Management · question 781

Q781

In Capital Market Line every investment is

A.
infinitely divisible
Answer
B.
finitely divisible
C.
a & b
D.
all of answer correct

Answer: Option A

Solution

Answer: Option A
Solution:
In Capital Market Line every investment is infinitely divisible. The capital market line (CML) represents portfolios that optimally combine risk and return. Capital asset pricing model (CAPM), depicts the trade-off between risk and return for efficient portfolios.