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MVA is the difference between the current market value of the firm and the capital
contributed by investors.
EVA is an estimate of a firm's economic profit. i.e., the profit earned by the firm less
the cost of financing the firm's capital
The firm's market value added, or MVA, is the discounted sum (present value) of all future expected
economic value added: MVA = Present Value of a series of EVA values.
Riskless Return According to CAPM, CML and SML are both half-lines that connect the risk-free
asset with the market portfolio.
The CML is used in the CAPM model to show the return that can be obtained by
investing in a risk free asset, and the increases in return as investments are made in
more risky assets.
The security market is the representation of the CAPM model in a graphical
format. The SML shows the level of risk for a given level of return.
2.CML gives the risk/return relationship for efficient portfolios whereas SML , also part of the
CAPM, gives the risk/return relationship for individual stocks.
3.The measure of risk used in CML is standard deviation whereas in SML it is the beta
coefficient.