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The Presence of a Risk-Free Asset Enables the Investor To

Question 5

Multiple Choice

The presence of a risk-free asset enables the investor to:
I.invest in the market portfolio;
II.find an interior portfolio using quadratic programming;
III.borrow or lend at the risk-free rate;
IV.form portfolios having greater Sharpe ratios


A) I and II only
B) I and III only
C) III and IV only
D) IV only

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