Jul 10, 2025 · What Is the Capital Market Line (CML)? The capital market line (CML) is a theoretical construct that depicts portfolios achieving the most efficient trade-off between risk and return.

The Capital Market Line (CML) draws its basis from the capital market theory and the capital asset pricing model. It is a theoretical representation of different combinations of a risk-free asset and a …

Capital market line (CML) is the tangent line drawn from the point of the risk-free asset to the feasible region for risky assets. The tangency point M represents the market portfolio, so named since all …

Feb 6, 2023 · The Capital Market Line (CML) is a graphical representation of a risk and return relationship for assets in the capital market. The CML is used by investors to identify the optimal …

Mar 19, 2024 · What is the capital market line (CML)? The Capital Market Line (CML) is a theoretical concept in finance that combines the risk-free rate of return with a market portfolio of risky assets to …

Jun 2, 2022 · The capital market line assumes the risk portfolio as a market portfolio. Graphically, a line is drawn that connects the market portfolio with the risk-free asset. This line is the capital market line. …

Apr 7, 2025 · The Capital Market Line (CML) is a graphical representation that helps investors understand the relationship between risk and return in the capital market. Plotting the cml on a risk …

One essential tool that investors and analysts use to aid in this decision-making process is the Capital Market Line (CML). The CML is a complex concept, but in essence, it provides a range of potential …

Sep 1, 2019 · The Capital Market Line (CML) is a special case of the CAL, that is, the line that makes up the allocation between a risk-free asset and a risky portfolio for an investor.

The Capital Asset Pricing Model (CAPM) formalizes this insight. It explains how the market prices systematic risk and determines the required rate of return on an investment based on its sensitivity to …