The CAL provided by combinations of 1month Tbills and a broa

The CAL provided by combinations of 1-month T-bills and a broad index of common stocks is called the ______.

total return line

CAPM

CML

SML

Solution

Correct option is > CML

CML = Capital Market Line and CAL = Capital Allocation Line

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The CAL provided by combinations of 1-month T-bills and a broad index of common stocks is called the CML.