Question
4. The clearest distinction between the capital market line (CML) and the security market line (SML) is: A. Only the CML includes a representation of
4. The clearest distinction between the capital market line ("CML") and the security market line ("SML") is:
A. Only the CML includes a representation of risk
B. The SML is designed to relate individual securities to the overall market
C. The SML will not capture the effects of leverage
D. One can only plot the risk free rate on the CML
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Financial Management for Public, Health and Not-for-Profit Organizations
Authors: Steven A. Finkler, Daniel L. Smith, Thad D. Calabrese, Robert M. Purtell
5th edition
1506326846, 9781506326863, 1506326862, 978-1506326849
