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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.

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11y ago

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What is a point of tangency?

It is the point at which a tangent touches a curve.


What is the definition of the tangency condition in relation to curves and how does it affect the behavior of the curve at the point of tangency?

The tangency condition refers to the point where a curve and a straight line touch each other without crossing. At this point, the curve and the line have the same slope. This affects the behavior of the curve at the point of tangency by creating a smooth transition between the curve and the line, without any abrupt changes in direction.


A tangent is to the radius that shares the point of tangency?

Perpendicular


A tangent is what to the radius that shares the point of tangency?

perpendicular


A tangent to the radius that shares the point of tangency?

perpendicular


How do you find the point of tangency?

A tangent is an object, like a line, which touches a curve. The tangent only touches the curve at one point. That point is called the point of tangency. The tangent does not intersect (pass through) the curve.


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).


The point at which a tangent line meets a circle is called the point of tangency?

true


What does the point represent?

the point is represent location , it has no dimension and it is named using capital letter\s .


The place where a tangent line intersects a circle?

Point of Tangency


What is the place where a tangent line intersects a circle?

Definition: a tangent is a line that intersects a circle at exactly one point, the point of intersection is the point of contact or the point of tangency. a tangent is a line that intersects a circle at exactly one point, the point of intersection is the (point of contact) or the **point of tangency**.


If a line is tangent to a circle then it is what to the radius drawn at the point of tangency?

Perpendicular