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The Capital Market LIne (CML) can be written as E(Rp) = Rf + [E(Rm)-Rf]*p/m E(Rp) = Rf + [E(Rm)-Rf]*m/p E(Rp) = Rf + [E(Rm)-Rf]*p/2m Rp

The Capital Market LIne (CML) can be written as

  • E(Rp) = Rf + [E(Rm)-Rf]*p/m
  • E(Rp) = Rf + [E(Rm)-Rf]*m/p
  • E(Rp) = Rf + [E(Rm)-Rf]*p/2m
  • Rp = p + *Rm + p
  • E(Rp) = Rf + [E(Rm)-Rf]*pm/2m

I've highlighted my answer in red, but I just wanted to check if I am correct.

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