Capital Market Line - CML
- 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 drawing a tangent line from the intercept point on the efficient frontier to the point where the expected return equals the risk-free rate of return.
The CML is considered to be superior to the efficient frontier since it takes into account the inclusion of a risk-free asset in the portfolio. The capital asset pricing model (CAPM) demonstrates that the market portfolio is essentially the efficient frontier. This is achieved visually through the security market line (SML).
Investment dictionary.
Academic.
2012.
Look at other dictionaries:
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
Capital Market Line — Die Kapitalmarktlinie (KML, engl. Capital Market Line, CML) ist eine Beziehung aus der Kapitalmarkttheorie. Sie ist die erwartete Rendite Risiko Kombination von effizienten Portfolios im Gleichgewicht. Die Kapitalmarktlinie ist ein Baustein des… … Deutsch Wikipedia
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 Asset Pricing Model — Das Capital Asset Pricing Model (CAPM) (zu deutsch: Preismodell für Kapitalgüter bzw. Kapitalgutpreismodell) ist ein Kapitalmarktgleichgewichtsmodell, das die Portfoliotheorie um die Frage erweitert, welcher Teil des Gesamtrisikos eines… … Deutsch Wikipedia
Cml — Cette page d’homonymie répertorie les différents sujets et articles partageant un même nom. {{{image}}} Sigles d une seule lettre Sigles de deux lettres > Sigles de trois lettres … Wikipédia en Français
CML — ( capital market line) 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… … Financial and business terms
CML — The term CML is an acronym which can refer to any of the following:Computer languages*Cache Meta Language, a language for configuring web server caching *Chemical Markup Language, a representation of chemistry using XML *Column Managed Lengths, a … Wikipedia
CML — Die Abkürzung CML steht für: Chronische myeloische Leukämie Chemical Markup Language Corporate Mortgage Loans Commodore Markup Language Coupled Map Lattice, ein dynamisches System, in dem die Werte der Elemente kontinuierlich verändert werden im… … Deutsch Wikipedia
CML — Cette page d’homonymie répertorie les différents sujets et articles partageant un même nom. Sigles d’une seule lettre Sigles de deux lettres > Sigles de trois lettres Sigles de quatre lettres … Wikipédia en Français
CML — Chronic Myelogenous Leukemia (Medical » Physiology) Chronic Myeloid Leukemia (Medical » Oncology) ** Chronic myeloid leukaemia (Medical » Oncology) ** Chemical Markup Language (Academic & Science » Chemistry) * Council Of Mortgage Lenders… … Abbreviations dictionary
