Example 2:CML and SML ▣Scenario ll: Security E[R]o[R] A 25% 30% M 15% 30% Answer:inconsistent A lies above the CML,which means that the market portfolio is inefficient. 2010/Yichuan Liu 14Example 2: CML and SML  Scenario Scenario II: Security E[R] σ[R] A 25% 30% M 15% 30%  Answer: inconsistent A lies above the CML, which means that the market portfolio is inefficient. 2010 / Yichuan Liu 14