We explain what the capital allocation line (CAL) is, show how to plot it, and discuss how it differs from the capital market line (CML).
If you'd like to learn more about the CAL and its formula, see our detailed lesson on this topic:
www.initialreturn.com/capital-allocation-line/
00:00 Intro
00:31 What’s the capital allocation line?
02:22 Formula
06:36 Comparison with the capital market line
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