capital market line

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. 2012.

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  • 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 — 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 — 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 New York Times Financial Glossary …   Financial and business terms

  • 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

  • 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

  • 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

  • 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

  • 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

  • Capital Asset Pricing Model — Saltar a navegación, búsqueda El Capital Asset Pricing Model, o CAPM (trad. lit. Modelo de Fijación de precios de activos de capital) es un modelo frecuentemente utilizado en la economía financiera. El modelo es utilizado para determinar la tasa… …   Wikipedia Español

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