What is the slope of the CML? What does it measure?

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Investments Analysis and Management

ISBN: 978-1118363294

12th edition

Authors: Charles P. Jones

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Question Posted: Dec 15, 2015 06:13 AM

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What is the slope of the CML, and why can it be reviewed as the market price of risk for efficient portfolios according to the CML?
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What is the slope of the CML? What does it measure?

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The slope of the CML is Where ERM is the expected return on the market M portfolio RF is th...View the full answer

Investments Analysis and Management

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