Multiple Choice
How can an investor earn more than the return generated by the tangency portfolio and still stay on the security market line?
A) Borrow at the risk-free rate and invest in the tangency portfolio.
B) Add high risk/return assets to the portfolio.
C) Adjust the weight of stock in the portfolio to include fewer high-return stocks.
D) It cannot be done.
Correct Answer:
Verified
Correct Answer:
Verified
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