The SML is valid for _______________ and the CML is valid for _______________.
a. Only individual assets; well diversified portfolios only
b. Only well diversified portfolios; only individual assets
c. Both well diversified portfolios and individual assets; both well diversified portfolios and individual assets
D. Both well diversified portfolios and individual assets; well diversified portfolios only
Answer: D. Both well diversified portfolios and individual assets; well diversified portfolios only