Question

4. __________ is not a true statement regarding the capital market line. A) The capital market line always has a positive slope B) The capital market line is also called the security market line C) The capital market line is the best attainable capital allocation line D) The capital market line is the line from the risk-free rate through the market portfolio

Answer 1

Answer: C The capital market line is also called the security market line

Step-by-step explanation:

Both the Capital Market Line and the Security Market Line represents risk/return relationships. However, the risk measure for the Capital Market Line is standard deviation and the risk measure for the Security Market Line is beta (hence C is not true; the other statements are true.