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While You Can Lend at the Risk-Free Rate but Cannot

Question 106

Multiple Choice

While you can lend at the risk-free rate but cannot borrow at that rate, your choice of a complete portfolio is


A) unaffected at all levels of risk.
B) separate from the shape of the Markowitz efficient frontier.
C) unaffected at low levels of risk but restricted at high levels of risk.
D) restricted at low levels of risk but unaffected at high levels of risk.
E) none of the above

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