Our website is made possible by displaying online advertisements to our visitors. Please consider supporting us by whitelisting our website.

Which statement is not true regarding the Capital Market Line (CML)?

/ » Security Analysis and Investment Management solved MCQs / By
Question:

Which statement is not true regarding the Capital Market Line (CML)?

A.

The CML is the line from the risk-free rate through the market portfolio.

B.

CML is the best attainable capital allocation line.

C.

The CML is also called the security market line.

D.

The CML always has a positive slope.

Answer» c. The CML is also called the security market line.

Note: The above multiple-choice question is for all general and Competitive Exams in India.