Multiple Choice
An investor who wishes to form a portfolio that lies to the right of the optimal risky portfolio on the capital allocation line must:
A) lend some of her money at the risk-free rate.
B) borrow some money at the risk-free rate and invest in the optimal risky portfolio.
C) invest only in risky securities.
D) such a portfolio cannot be formed.
E) borrow some money at the risk-free rate and invest in the optimal risky portfolio and invest only in risky securities
Correct Answer:
Verified
Correct Answer:
Verified
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