CFA Practice Question

There are 294 practice questions for this study session.

CFA Practice Question

The Capital Market Line reflects risk in terms of ______.
A. beta
B. coefficient of variation
C. standard deviation
Explanation: The CML is the line that is tangent to the efficient frontier and has the intercept equal to the risk-free rate. It is plotted on the expected-return versus the standard-deviation plane.

User Contributed Comments 1

User Comment
chuong CML examines the exptected return on efficient portfolio and total risk measure by SD, while SML examines the expected return on individual assets ans systematic risk by Beta.
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