Capital Market Line: Difference between revisions
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imported>Doug Williamson m (Category added 9/10/13 and spacing) |
imported>Doug Williamson (Correct typo.) |
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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 | #The most efficient portfolio of market assets (also known as the ''market portfolio''). | ||
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== See also == | == See also == | ||
*[[Modern Portfolio Theory]] | |||
*[[Security Market Line]] | *[[Security Market Line]] | ||
[[Category:Risk_frameworks]] | [[Category:Risk_frameworks]] | ||
Latest revision as of 08:22, 5 June 2018
(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.
