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 all investors will invest in a combination of the riskless asset and the tangency portfolio. B. the capital market line which shows that all investors will only invest in the riskless asset. 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. None of these.
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 all investors will invest in a combination of the riskless asset and the tangency portfolio. B. the capital market line which shows that all investors will only invest in the riskless asset. 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. None of these.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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 all investors will invest in a combination of the riskless asset and the tangency portfolio.
B. the capital market line which shows that all investors will only invest in the riskless asset.
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. None of these.
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