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An analyst makes the following statemnts about CML and SML: Statement 1: The relevant measure of risk associated with the CML is total risk (standard

An analyst makes the following statemnts about CML and SML:

Statement 1: The relevant measure of risk associated with the CML is total risk (standard deviation).

Statement 2: The relevant measure of risk associated with the SML is market risk (beta).

A) Statement 1 is correct, statement 2 is incorrect.

B) Statement 1 is incorrect, statement 2 is correct.

C) Both statements are correct

D) Both statements are incorrect.

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