answersLogoWhite
answersLogoWhite
Asked in Business & Finance, Investing and Financial Markets, Stock Market
Business & Finance
Investing and Financial Markets
Stock Market

What is capital market line?

345

Answer

User Avatar
Wiki User
08/09/2012

It is discussed in efficient market hypothesis, meaning that you can not beat the market. Capital market line is drawn as a tangent on the curve representing both risky and non risky portfolio. At the point where tangent is drawn represents a model portfolio akin to market. All portfolio above this point has a higher risk reward ratio.

Related Questions

1
Asked in Business & Finance, Investing and Financial Markets, Business and Industry

Who discovered the capital market line?

James Tobin (1958) extended Markowitz's work by developing the Capital Market Line. ...
Read More
1
Asked in Investing and Financial Markets

What does the tangency point M represent in the Capital Market Line?

The tangency point M represents one main feature and factor in the Capital market Line which is called the market portfolio which shows the wealth which is in a risky position in the assets of a company. ...
Read More
1
1
Asked in Business & Finance, Investing and Financial Markets, Economics, Humor & Amusement, Stock Market

What do you mean by capital market?

capital market is a market where long term loans are availble that place called capital market ...
Read More
1
Asked in Investing and Financial Markets

Who are the capital market and money market operators?

who are the operators of money market and capital market
Read More
1
Asked in Business & Finance, Stock Market

What is advantage of security market line?

SML is also known as Security market line. It is the graphical representation of CAPM or Capital Asset Pricing Model. Here few advantages of SML approach: Financing of Capital Goods Additional Source of Finance ...
Read More
1
Asked in Investing and Financial Markets, Stock Market

Is the stock market a part of the capital market?

The stock market is part of the Capital Market. The Capital Market also includes the bond market. The U.S. Securities and Exchange Commission (SEC)protects investors in the capital market from fraud. ...
Read More
1
1
1
Asked in Business & Finance, Investing and Financial Markets, Economics, Nigeria, Stock Market

The role of capital market in economic development a case study of Nigerian stock exchange?

The capital market as a tool for economic development (case study of the nigerian capital market) - - capital market ...
Read More
1
Asked in Business & Finance, Investing and Financial Markets, Companies

What are financial markets?

A market for the exchange of capital and credit, including the money market and the capital market. ...
Read More
1
1
Asked in Bangladesh

What are the capital market instrument in Bangladesh?

Capital market instrument in Bangladesh
Read More
1
1
1
Asked in Economics, Business & Finance

What is market value of capital employed and how is the evaluation?

the market value of capital is a company's to market value minus is liability ...
Read More
1
1
Asked in Investing and Financial Markets

What are DCM and ECM in investment banking?

Equity Capital Market, Debt Capital Market
Read More
1
Asked in Real Estate, Stock Market

How do market rates and the company's perceived market risk impact its cost of capital?

How does the capital market affect corporate governance?
Read More
1
Asked in Business & Finance, Investing and Financial Markets, Stock Market

Capital market instruments?

Equity and Debt instruments are the broader classification of capital market instruments. ...
Read More
1
Asked in Business & Finance, Investing and Financial Markets

Roles of capital market in industral financing?

How can the role of capital market help in financing an industry.
Read More
1
Asked in Investing and Financial Markets, Economics

How capital market can be improved?

capital market by sell their shares at that face value which can rase the fund. ...
Read More
1
1
Asked in Business & Finance, Investing and Financial Markets, The Difference Between

Difference between securities market and capital market?

A capital market is a market that is for the trading of financial securities between buyers and sellers. Whereas a securities market is a market where securities trading is done by stockbrokers. ...
Read More
1