Question: 7. (A CAPM question) What is the differences between the relationship described by the capital market line (CML) and the security market line (SML)? Consider

7. (A CAPM question) What is the differences between the relationship described by the capital market line (CML) and the security market line (SML)?

Consider a particular portfolio P with total risk p.

When will the SML and CML equations give the same Erp?

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