Question

    What is the risk measure associated with the Capital Market Line (CML)?

    A Beta risk Correct Answer Incorrect Answer
    B Unsystematic risk Correct Answer Incorrect Answer
    C Systemic risk Correct Answer Incorrect Answer
    D Systematic risk Correct Answer Incorrect Answer
    E Total risk Correct Answer Incorrect Answer

    Solution

    The capital market line plots return against total risk which is measured by standard deviation of returns.

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