Capital Market Line: Difference between revisions

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#A theoretical risk-free asset, and
#A theoretical risk-free asset, and
#The most efficient portfolio of market assets (also known as the Market portfolio.
#The most efficient portfolio of market assets (also known as the ''market portfolio'').




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#The expected return on such a theoretical portfolio, and
#The expected return on such a theoretical portfolio, and
#The risk of such a portfolio.
#The risk of such a portfolio.




== See also ==
== See also ==
*[[Modern Portfolio Theory]]
*[[Security Market Line]]


*[[Security Market Line]]
[[Category:Risk_frameworks]]
*[[Modern Portfolio Theory]]

Latest revision as of 08:22, 5 June 2018

(CML).

The Capital Market Line considers theoretical portfolios consisting of different proportions of:

  1. A theoretical risk-free asset, and
  2. The most efficient portfolio of market assets (also known as the market portfolio).


The CML is a straight line relationship between:

  1. The expected return on such a theoretical portfolio, and
  2. The risk of such a portfolio.


See also