Which of the following steps should be taken by investor who wishes to form a portfolio that lies to the right of the optimal risky portfolio on the Capital Allocation Line? - Study24x7
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265 followers study24x7 19 Jul 2021 06:15 PM study24x7 study24x7

Which of the following steps should be taken by investor who wishes to form a portfolio that lies to the right of the optimal risky portfolio on the Capital Allocation Line?

A

Lend some of her money at the risk-free rate and invest the remainder in the optimal risky portfolio

B

Borrow some money at the risk-free rate and invest in the optimal risky portfolio

C

Such a portfolio cannot be formed

D

None of the above

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