In Capital Market Line every investment is

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In Capital Market Line every investment is

A. infinitely divisible

B. finitely divisible

C. a & b

D. all of answer correct

Answer: Option A

Solution (By Examveda Team)

In Capital Market Line every investment is infinitely divisible. The capital market line (CML) represents portfolios that optimally combine risk and return. Capital asset pricing model (CAPM), depicts the trade-off between risk and return for efficient portfolios.

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