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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
Total Response
Banking
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