CFA Practice Question

There are 294 practice questions for this study session.

CFA Practice Question

Which of these characteristics does not apply to the CML?
A. It is dependent on beta.
B. It is a straight line AND tangent to the efficient frontier.
C. The portfolios on the CML are positively correlated.
Explanation: The CML measures risk with total variability (variance or standard deviation). It is not dependent on beta, which is relevant in the Capital Asset Pricing Model.

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