![cover image](https://wikiwandv2-19431.kxcdn.com/_next/image?url=https://upload.wikimedia.org/wikipedia/commons/thumb/9/93/CML-plot.png/640px-CML-plot.png&w=640&q=50)
Capital market line
From Wikipedia, the free encyclopedia
Capital market line (CML) is the tangent line drawn from the point of the risk-free asset to the feasible region for risky assets. The tangency point M represents the market portfolio, so named since all rational investors (minimum variance criterion) should hold their risky assets in the same proportions as their weights in the market portfolio.[1]
![Thumb image](http://upload.wikimedia.org/wikipedia/commons/thumb/9/93/CML-plot.png/320px-CML-plot.png)