QUESTION $15$

What represents investors' indifference curve in the CAPM model?

A$.$ The risk free rate

B$.$ The market return

C$.$ The market risk premium

D$.$ Beta

QUESTION $16$

Which of the following statements is true about the Security Market Line $($SML$)$ and the Capital Market Line $($CML$)?$

A$.$ The SML is the CML without the market risk premium

B$.$ The CML is the inverse of the SML

C$.$ The CML gives the risk$/$return relationship for efficient portfolios, while the SML gives the risk$/$return relationship for individual stocks

D$.$ The SML gives the risk$/$return relationship for efficient portfolios, while the CML gives the risk$/$return relationship for individual stocks