Rytvae Consulting · Think Right · Invest Right
Capital Market Line Calculator
Result
Chart
Show formula & working
E(Rp) = Rf + [(Rm − Rf) ÷ σm] × σp · Weight in the market portfolio = σp ÷ σm
Details
Risk-free rate reference: 91-day Treasury Bill yield: rates and rules as of 28-Oct-2026 · Source: Reserve Bank of India — 91-day T-Bill cut-off yield at the last auction (RBI website, checked 31 Oct 2026). Every figure based on it stays editable.
How this works
The capital market line shows the best return available for each level of total risk by mixing the market portfolio with a risk-free asset.
Below the market's risk you lend (hold some risk-free assets); above it you borrow to invest more in the market.
Frequently asked questions
CML or SML?
The CML uses total risk (SD) and applies to efficient portfolios. The SML uses beta and applies to any single security.
Can I really borrow at the risk-free rate?
Not usually — borrowing costs more, which bends the line down beyond the market portfolio.