Which of the following statements regarding the capital allocation line (CAL) is false?

A) The CAL shows risk-return combinations.
B) The slope of the CAL equals the increase in the expected return of the complete portfolio per unit of additional standard deviation.
C) The slope of the CAL is also called the reward-to-volatility ratio.
D) The CAL is also called the efficient frontier of risky assets in the absence of a risk-free asset.

Capital Allocation Line

A line on a graph that represents the risk-reward ratio of investments, showing the optimal portfolio mix between risk-free assets and risky assets.

Reward-to-Volatility Ratio

A measure of the return on an investment relative to its risk, often used to compare the performance of investment strategies.

Efficient Frontier

A graphical representation of the set of optimal portfolios that provides the best possible expected return for a given level of risk.