Capital Allocation Line

In Markowitz Portfolio Theory, a line plotting the return at a given level of risk of all portfolios that can be formed using a risky asset and a riskless asset. The line is designed to show investors the return they are likely to make at different levels of risk. See also: Markowitz efficient set of portfolios.

Mentioned in

Risk-Free Interest Rate
risk-free rate
risk-free return
Riskless rate

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