Example 2:CML and SML ▣Scenario lll:: Security E[R] σ[R] A 25% 55% F 5% 0% M 15%30% QAnswer:inconsistent A lies above the CML,which means that the market portfolio is inefficient. 2010/Yichuan Liu 15Example 2: CML and SML  Scenario Scenario III: Security E[R] σ[R] A 25% 55% F 5% 0% M 15% 30%  Answer: inconsistent A lies above the CML, which means that the market portfolio is inefficient. 2010 / Yichuan Liu 15