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Capital market line (CML) |
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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 risk premium you earn for taking on extra risk. Defined by the capital asset pricing model.Capital market line (CML) Similar MatchesVenture CapitalVenture CapitalCapital invested in a new or growing entrepreneurial venture in the hope of receiving future financial returns. Opportunity cost of capitalOpportunity cost of capitalExpected return that is forgone by investing in a project rather than in comparable financial securities. Capital gainCapital gainWhen a stock is sold for a profit, the capital gain is the difference between the net sales price of the securities and their net cost, or original basis. If a stock is sold below cost, the difference is a capital loss. Perfectly mobile capitalPerfectly mobile capitalPerfect capital mobility. Working capitalWorking capitalDefined as the difference between current assets and current liabilities (excluding short-term debt). Current assets may or may not include cash and cash equivalents, depending on the company. Further SuggestionsInvestment Company with Variable CapitalCapital Capital flight share capital Issued share capital Capital gain Capital expenditure return on capital employed Capital surplus Capital loss Capital movement Capital inflow authorised share capital Financial capital Real capital Net capital requirement Working capital management Return to capital Capital gains tax Other capital Capital gains distribution Capital Core capital Capital market capitalisation issue |
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