Capital Allocation Line (CAL)
A line created in a graph of all possible combinations of risky and risk-free assets. Also known as the "reward-to-variability ratio".

Investopedia Says:
The graph displays to investors the return they can make by taking on a certain level of risk.

Related Terms:
Efficient Frontier
Expected Return
Modern Portfolio Theory - MPT
Portfolio
Risk
Risk/Return Tradeoff

• Asymmetric Volatility Phenomenon (AVP)
• Athens Stock Exchange (ATHEX)
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• A Ton Of Money
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