Capital Market Line: Difference between revisions
From ACT Wiki
Jump to navigationJump to search
imported>Doug Williamson (Create page.) |
(No difference)
|
Revision as of 16:58, 24 August 2013
(CML).
The Capital Market Line considers theoretical portfolios consisting of different proportions of:
- A theoretical risk-free asset, and
- The most efficient portfolio of market assets (also known as the Market portfolio.
The CML is a straight line relationship between:
- The expected return on such a theoretical portfolio, and
- The risk of such a portfolio.