the book states that the Capital Allocation line is:
E(Rp) = RFR + ((E(Ri) - RFR) / SDi) * SDport
the slope is called market price of risk (sharpe ratio)
What I do not get is that if the markets gets more volatile then the curve steepens, but is this because the market price of risk increases?
But if market risk increases then the Sharpe ratio would be less and so flatting the curve and not steepening it