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Can someone explain me the relation between credit spread and Rf? Why is it that increasing the risk-free rate decreases the credit spreads?

We regressed weekly Lotto expenditures, Y(i), against weekly disposable income, X(i) to generate the following sample regression function (SRF): Y(i) = 1.527 + 0.106*X(i). The standard error of regression (SER) is 2.0327. The variance of X(i) is 5,156.3. The sample size is 10 (n=10). What is the...

Thanks Shakti...It is clear now...I had misinterpreted the question.

Hi Just came across this question The treynor and sharpe ratios will : a) give identical rankings when the assets have identical correlations with the market. b) give identical rankings when the assets have identical standard deviations. c) give identical rankings when the same minimum...

thanks shakti.. it is clear now.

Hi As per my understanding SML is a special case of CML when the correlation between the portfolio and market is +1. This would mean that there exists a perfect positive correlation between the efficient portfolios and the market. Can someone explain this.