Efficient Frontier (continued)

By using RF, the Efficient Frontier is now dominated by the capital market line (CML). Each portfolio on the capital market line dominates all portfolios on the Efficient Frontier at every point except M.

By using RF, the Efficient Frontier is now dominated by the capital market line (CML). Each portfolio on the capital market line dominates all portfolios on the Efficient Frontier at every point except M.