what is the capital market line
Here is a good definition:
A graph relating risk (as represented by the market portfolio's beta) and the required return for the market portfolio. This is a positive, linear relationship that originates from the Capital Market Asset Pricing theory which states that all investors will own the market portfolio (as opposed to single securities). However, the amount of risk they will take on is positively correlated to expected return, where expected return = risk-free rate + portfolio beta * (the difference between the expected return on the market as a whole and the risk-free rate).
Source:
http://www.investorwords.com/727/capital_market_line.html
The search for people who can answer your question continues for as long as needed - until you find the answer you were looking for.
When an answer is posted by someone who was invited (byYedda or by yourself) to answer your question, their answer is marked with a yellow "invited by Yedda".
To be invited to answer other people's questions in your areas of knowledge and interest, be sure to list your favorite topics:
» My Settings › My Topics.
Of course, the more helpful your answers are, the more likely you are to be invited to future questions...
Got an answer for nirh30? Would you like to comment on the posted answers, or vote for the one which you think is the best?
Sign up for a free account, or sign in (if you're already a member).
Other people asked questions on similar topics, check out the answers they received:
