answersLogoWhite

0

It is the job of BIS to guide in their official web site how to locate it. The site is defunct or encouraging spurious articles in market.

User Avatar

Wiki User

12y ago

What else can I help you with?

Continue Learning about Finance

How does capital market line differ from security market line?

From Investopedia.com: The capital market line (CML) is a line used in the capital asset pricing model to illustrate the rates of return for efficient portfolios depending on the risk-free rate of return and the level of risk (standard deviation) for a particular portfolio. The CML is derived by drawing a tangent line from the intercept point on the efficient frontier to the point where the expected return equals the risk-free rate of return. The CML is considered to be superior to the efficient frontier since it takes into account the inclusion of a risk-free asset in the portfolio. The capital asset pricing model (CAPM) demonstrates that the market portfolio is essentially the efficient frontier. This is achieved visually through the security market line (SML). The security market line is a line that graphs the systematic, or market, risk versus return of the whole market at a certain time and shows all risky marketable securities. The SML essentially graphs the results from the capital asset pricing model (CAPM) formula. The x-axis represents the risk (beta), and the y-axis represents the expected return. The market risk premium is determined from the slope of the SML. The security market line is a useful tool in determining whether an asset being considered for a portfolio offers a reasonable expected return for risk. Individual securities are plotted on the SML graph. If the security's risk versus expected return is plotted above the SML, it is undervalued because the investor can expect a greater return for the inherent risk. A security plotted below the SML is overvalued because the investor would be accepting less return for the amount of risk assumed.


Related Questions

How do you find a company's cml number?

To purchase of goods


How do you find a company's cml isi number?

To purchase of goods


What ROMAN number is represented by CML?

2011Improved Answer:-CML = 950


What is CML ranking?

Common Merit List (CML) is prepared without any relaxed criteria, such that the number of candidates in the merit list is equal to the total number of seats available. The aggregate marks scored by the last candidate in the CML will be the CML cut-off score (CCS)


What is the roman number of 950?

950 = CML


What is the roman numeral for the number 950?

CML


Can there be 10 digit CML number on plywood?

Yes, a 10-digit CML (Composite Material License) number can be assigned to plywood if it meets the necessary criteria for composite materials. The CML number is used to ensure that the product complies with relevant regulations and standards. However, not all plywood products may require or have a CML number, as it depends on the specific materials and intended use.


How do you search company from isi cml number?

To goods purchase


What is the numeric value of the roman numeral cml?

The numeric value of the Roman numeral CML is 950.


What does the medical abbreviation CML mean?

CML means chronic myelogenous leukemia.


What are the differences between capital allocation line CAL and capital market line CML?

CML = CAL for the entire market, assuming everyone has the same mean variance expectations ( E(R), variances, correlations). CAL is just the CML for individual investors. CAL and CML both combine the risk free asset with the optimal portfolio, only with CML that optimal portfolio is the market portfolio (tangency point of CML).


What is 950 in roman numeral?

CML which is a shortened version of DCCCCL