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The capital market line is determined by a mix of: the riskfree asset and the market portfolio. The market portfolio, in turn, consists of all risk...
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why is the CML linear ?
i understand how we get to the mkt portfolio and the rf point but why are alle possible combinations of nkt portfolio and riskfree portfolios linear?
why is the CML linear ?
i understand how we get to the mkt portfolio and the rf point but why are alle possible combinations of nkt portfolio and riskfree portfolios linear?