The Capital market Line When the market approaches equilibrium Each investor want to hold a certain positive amount of each risky security The current market price of each security will be at a level where the number of shares demanded equals the number of shares of shares outstanding. The riskfree rate will be at a level where the total amount of money borrowed equals the total amount of money debt.The Capital Market Line • When the market approaches equilibrium – Each investor want to hold a certain positive amount of each risky security. – The current market price of each security will be at a level where the number of shares demanded equals the number of shares of shares outstanding. – The riskfree rate will be at a level where the total amount of money borrowed equals the total amount of money debt