Relationship between SML & CML

[sumeetg]

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.

 

[ShaktiRathore]

please visit this link: http://forum.bionicturtle.com/threads/capm-sml-cml.5347/#post-25435

thanks

 

[sumeetg]

thanks shakti.. it is clear now.