Capital Allocation Line - CAL
A line created in a graph of all possible combinations of risky and risk-free assets. Also known as the "reward-to-variability ratio".
Investopedia Commentary
The graph displays to investors the return they can make by taking on a certain level of risk.
Related Links
Achieving Optimal Asset Allocation
A Guide To Portfolio Construction
See also: Efficient Frontier, Expected Return, Modern Portfolio Theory - MPT, Portfolio, Risk, Risk/Return Tradeoff
Also spelled: CAL