Capital Allocation Line/ Capital Market Line

Capital Allocation Line/ Capital Market Line

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LOS B requires us to:explain the capital allocation line (CAL) and the capital market line (CML)  1.  Capital Allocation LineConsider the following figure:In the above figure,a.  CAL(A), CAL(B), and CAL(C) represent the capital allocation line for the three assets A, B, and C. Points A, B, and C are the risk-return…

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