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Question
Which of the following statements about the difference between the SML and the CML is TRUE?a. The intercept of the CML is the origin while the intercept of the SML is RF. b. CML consists of efficient portfolios, while the SML is concerned with all
portfolios or securities.
c. CML could be downward sloping while that is impossible for the SML.
d. CML and the SML are essentially the same except in terms of the
securities represented.
Answer
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