hi, actually i dont understand the purpose of CML and security market line in the topic of Cost of capital, what these graph wan to tell us ? why efficient frontier is curve ? what psychology investor thinking about when the risk increase and the small and small proportion of the marginal will decrease, because what shareholder or investor want is when the risk is higher and the return should be higher, why when the increase of risk but the marginal return keep decrease ?
and what should i understand and study for these (CML and security market line)sub topic ?
Ask the Tutor ACCA AFM
The capital market line (CML) and Security market Line
6y ago#1These lines are not examined in Paper AFM.
Everything that is examinable (in both calculation and in written questions) is explained in my free lectures on CAPM.
for the theory question, if i redo all the pass year papers (latest 10 papers) will be sufficient or also need to do the revision kit ? if i do the old version of revision kit is that ok?
6y ago#3Best is to to both - past year papers and your Revision Kit.
It depends how old your Revision Kit is. There have been changes to the syllabus, but for the last few years the changes have been pretty minor.
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