The Combination of the Efficient Set of Portfolios with a Riskless

Multiple Choice

The combination of the efficient set of portfolios with a riskless lending and borrowing rate results in:

A) the capital market line which shows that investors will only invest in the riskless asset.
B) the capital market line which shows that investors will invest in a combination of the riskless asset and the tangency portfolio.
C) the security market line which shows that all investors will invest in the riskless asset only.
D) the security market line which shows that all investors will invest in a combination of the riskless asset and the tangency portfolio.
E) the capital market line which shows that investors will invest at the vertical intercept point of that line.