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.
Nearby TermsCapital market efficiency Capital market imperfections view Capital market line (CML) Capital Purchase Program Capital rationing
Copyright © 2011 Campbell R. Harvey, Professor of Finance, Fuqua School of Business at Duke University