James Tobin (1958) extended Markowitz's work by developing the Capital Market Line.
Definition of capital market line
a portfolio with a long position in risk free assest
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.
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
capital market is a market where long term loans are availble that place called capital market
capital market
who are the operators of money market and 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.
functions of capital market
A market for the exchange of capital and credit, including the money market and the capital market.
features of capital market development india
the market value of capital is a company's to market value minus is liability