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The Capital Market Line

См. также в других словарях:

  • Capital Market Line - CML — 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… …   Investment dictionary

  • capital market line — ( CML) The line defined by every combination of the risk free asset and the market portfolio. The line represents the risk premium you earn for taking on extra risk. Defined by the capital asset pricing model. Bloomberg Financial Dictionary …   Financial and business terms

  • capital market line — noun A line representing the relationship between expected return and standard deviation. See Also: capital allocation line, security market line …   Wiktionary

  • Capital market line (CML) — The line defined by every combination of the risk free asset and the market portfolio. The New York Times Financial Glossary …   Financial and business terms

  • Security Market Line - SML — 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. Also refered to as the characteristic line . The SML essentially graphs the results from the capital …   Investment dictionary

  • Security market line — In Modern Portfolio Theory, the Security Market Line (SML) is the graphical representation of the Capital Asset Pricing Model. It displays the expected rate of return for an overall market as a function of systematic (non diversifiable) risk… …   Wikipedia

  • security market line — Line representing the relationship between expected return and market risk or beta. The slope of this line is the risk premium for beta. Bloomberg Financial Dictionary + security market line The linear relationship between expected asset returns… …   Financial and business terms

  • Market portfolio — is a portfolio consisting of a weighted sum of every asset in the market, with weights in the proportions that they exist in the market, with the necessary assumption that these assets are infinitely divisible.[1] Richard Roll s critique… …   Wikipedia

  • Market Risk Premium — The difference between the expected return on a market portfolio and the risk free rate. Market risk premium is equal to the slope of the security market line (SML), a capital asset pricing model. Three distinct concepts are part of market risk… …   Investment dictionary

  • Capital asset pricing model — In finance, the Capital Asset Pricing Model (CAPM) is used to determine a theoretically appropriate required rate of return of an asset, if that asset is to be added to an already well diversified portfolio, given that asset s non diversifiable… …   Wikipedia

  • equilibrium market price of risk — The slope of the capital market line ( CML). Since the CML represents the expected return offered to compensate for a perceived level of risk, each point on the line is a balanced market condition, or equilibrium. The slope of the line determines …   Financial and business terms

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