Assertion (A): The Capital Market Line (CML) represents the risk-return trade-off in a diversified portfolio.
Reason (R): The CML starts from the risk-free rate and is tangent to the efficient frontier.
1
Both A and R are true, and R is the correct explanation of A.
2
Both A and R are true, but R is not the correct explanation of A.
3
A is true, but R is false.
4
A is false, but R is true