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Corporate Finance: Understanding Capital Market Line, Security Market Line, Minimum Variance Portfolio and CAPM Calculation

Explain and graphically depict how Security Market Line (SML) is different from Capital Market Line (CML). Identify and discuss the importance of minimum variance portfolios? Why CAPM equation might be more relevant than other equations when calculating required rate of return.

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Added on  2023-06-08

About This Document

This article discusses the significance of Capital Market Line, Security Market Line, Minimum Variance Portfolio and CAPM Calculation in Corporate Finance. It explains the differences between CML and SML, the significance of minimum variance portfolio and why CAPM calculation is extensively used by investors.
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