plot_cml

EfficientFrontier.plot_cml(rf_return=0, figsize=None)

Plot Capital Market Line (CML).

The Capital Market Line (CML) is the tangent line drawn from the point of the risk-free asset (volatility is zero) to the point of tangency portfolio or Maximum Sharpe Ratio (MSR) point.

The slope of the CML is the Sharpe ratio of the tangency portfolio.

Parameters:

rf_returnfloat, default 0

Risk-free rate of return.

figsizetuple[float, float], default None

Figure size (width, height) in inches. If None, matplotlib default is used.

Returns:

Axes

Matplotlib axes with the plot.

Examples

>>> import matplotlib.pyplot as plt

>>> three_assets = ["SPY.US", "AGG.US", "GLD.US"]
>>> ef = ok.EfficientFrontier(assets=three_assets, ccy="USD", full_frontier=True)
>>> ef.plot_cml(rf_return=0.05)  # Risk-Free return is 5%
>>> plt.show()