eekanath

What is the difference between Capital Market Line and Securities Market Line?

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mcboon
"CML stands for Capital Market Line, and SML stands for Security Market Line. The CML is a line that is used to show the rates of return, which depends on risk-free rates of return and levels of risk for a specific portfolio. SML, which is also called a Characteristic Line, is a graphical representation of the market’s risk and return at a given time "
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hollyb
"One of the variances between CML in addition to SML, is how the chance variables usually are calculated. Even though normal diversion will be the measure of chance intended for CML, Try out coefficient determines the chance elements from the SML. The CML procedures the risk through standard deflection, or perhaps by having a sum possibility issue. Then again, the actual SML measures the chance by means of toy with, which will help to obtain the protection’azines danger factor for the portfolio. Even though the Great Market Brand equity graphs outline productive stock portfolios, the protection Market Occupation maps outline both useful as well as non-effective domain portfolios"
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