contestada

An investor who wishes to form a portfolio that lies to the right of the optimal risky portfolio on the Capital Allocation Line must:

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. invest only in risky securities.
D. such a portfolio cannot be formed.
E.B and C

Respuesta :

estryzy

Answer:

E. B and C

Explanation:

An investor who has an aim of forming a portfolio that lies to the right of the optimal risky portfolio on the capital allocation line must do so by borrowing some money at the risk-free rate and then investing this borrowed money in the optimal risky portfolio. By doing so, the investor must also be willing to invest in risky securities.

qorzeem1

Answer:

B and C

Borrow some money at risk free rate and invest in the optimal risky portfolio AND Invest only in risky securities.

Explanation:

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