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explain the question 7. Which of the following is NOT a major difference between the capital market line (CML) and the capital asset pricing model

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7. Which of the following is NOT a major difference between the capital market line (CML) and the capital asset pricing model (CAPM)? a. Definitions of portfolio risk are based on systematic and total risk. b. One is related to the market portfolio, and the other is not. c. The number of calculations to determine risk is significantly greater for one method. d. One requires a tangency point on the efficient frontier, and the other does not. e. CML measures total risk by the standard deviation of the investment, while the SML considers only the systematic component of an investment's volatility. 8. The capital market line (CML) uses as a risk measurement, whereas the capital asset pricing model (CAPM) uses a. beta; total risk b. standard deviation; total risk c. standard deviation; systematic risk d unsystematic risk; total risk e. systematic risk; beta 9. The the number of stocks in a portfolio and the the time period, the the portfolio beta. a. larger, longer, less stable b. larger, longer, more stable c. larger, shorter, less stable d. larger, shorter, more stable e smaller, longer, more stable

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