Which of the following statements is not correct about the capital allocation line (CAL)? Options: The capital
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Question:
Which of the following statements is not correct about the capital allocation line (CAL)?
Options:
| The capital allocation line using the market index portfolio as the risky asset is called the capital market line (CML). |
| One can achieve the maximum possible return along the capital allocation line by investing 100% in the risky asset. |
| It is a plot of risk-return combinations available by varying allocation between risky and risk-free assets. |
| The slope of the capital allocation line is the Sharpe ratio. |
Related Book For
Auditing and Assurance Services
ISBN: 978-0077862343
6th edition
Authors: Timothy Louwers, Robert Ramsay, David Sinason, Jerry Straws
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