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Formula written as market risk premium divided by standard deviations of...

This question belongs to Commerce Financial Management
Financial Management
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Formula written as market risk premium divided by standard deviations of returns on market portfolio is used to calculate

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Correct Answer: Option A
Formula written as market risk premium divided by standard deviations of returns on market portfolio is used to calculate capital market line. Capital market line (CML) is a graph that reflects the expected return of a portfolio consisting of all possible proportions between the market portfolio and a risk-free asset.
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