CML *VS* CAL?

CFA Level II
#1

What are the differences? They sound exactly alike!

#2

CAL can be done for individual investors while there is only one CML. I think the CML is the same as the CAL just with all available investments included.

#3
  1. CML is the CAL for ‘ALL possible investible risky assets’ (i.e. CML is the optimal CAL) 2. We can have many CAL’s. Just pick up some risky assets, plot it against E® and Var and here we go. But we can only have one unique CML