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Forex Trading

Difference between Capital Allocation Line CAL, Capital Market Line CML, Security Characteristics Line SCL and the Security Market Line SML

It shows that we move up the CML, both the expected return and risk (standard deviation) increase. The CML intersects the y-axis at the risk-free rate and is tangent to the efficient frontier at the market portfolio. Any return above the CML is not achievable and any return below the CML is inefficient. The capital

Difference between Capital Allocation Line CAL, Capital Market Line CML, Security Characteristics Line SCL and the Security Market Line SML Read More »