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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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