CML Vs SML
1.Capital Market Line (CML) actually represents the expected returns if the efficient portfolios as a function of their volatility which is measured by the standard deviation of their returns whereas the Security Market Line (SML) represents the expected returns of the individual asset as a function of its sensitivity to market fluctuations.
2.CML gives the risk/return relationship for efficient portfolios whereas SML , also part of the CAPM, gives the risk/return relationship for individual stocks.
3.The measure of risk used in CML is standard deviation whereas in SML it is the beta coefficient.
14 comments:
very helpful sam and i thank you.
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V NICE AND V HELPFUL,plzzz upload more topics :)
Very simple and helpful explanation
Thank you very much
Thanks man. Very helpful
Thank you! Finally someone who can explain it to humans. Thank you!
Thanks everyone! I am back and will update it very soon.
I have received good information about CML Vs SML. I like to learn P/E ratio..please share regarding it even I am much more interested to invest in Finance companies in USA - Atlanticus Corp ; Ace Limited is my favorite NASDAQ Listed Co.
Thanks for the info.
thank you. this was great
Thank you, this cleared up my confusion.
Thank You so much for explaining it!
Very Nice article . Easy to understand
Difference between CML and SML>
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