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Are the two following statements correct? Statement 1: In the CAPM, the capital market line is also called the security market line. Statement 2: The
Are the two following statements correct? Statement 1: In the CAPM, the capital market line is also called the security market line. Statement 2: The Sharpe ratio is equal to the portfolio's alpha divided by the portfolio's standard deviation.
A. | Yes | |
B. | No. Both statements are incorrect. | |
C. | No. Only statement 1 is correct. | |
D. | No. Only statement 2 is correct. |
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