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Glossary   >   C   >   "Capital market line (CML)" Definition            Capital market line (CML) The line defined by every combination of the risk-free asset and the market portfolio. The line represents the extra risk premium you get for taking an extra risk. Defined by the Capital Asset Pricing Model. Glossary    Dictionary Search (powered by Google) WWW ITLOCUS.COM GLOSSARY.ITLOCUS.COM Translate a web page (powered by Google)      to German Spanish French Italian Portuguese Japanese Korean Chinese

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Capital market line (CML) - The line defined by every combination of the risk-free asset and the market portfolio. The line represents the extra risk premium you get for taking an extra risk. Defined by the Capital Asset Pricing Model.