By Combining Lending and Borrowing at the Risk-Free Rate with Efficient

question 70

Multiple Choice

By combining lending and borrowing at the risk-free rate with efficient portfolios, we can

• A)extend the range of investment possibilities.
• B)extend the range of investment possibilities and change the set of efficient portfolios from being curvilinear to a straight line.
• C)extend the range of investment possibilities, change the set of efficient portfolios from being curvilinear to a straight line, and provide a higher expected return for any level of risk, except for the tangential portfolio and the risk-free asset.
• D)change the set of efficient portfolios from being curvilinear to a straight line and provide a higher expected return for any level of risk, except for the tangential portfolio and the risk-free asset.

---

Definitions:

Level of Education

Refers to the highest degree or stage of formal learning that an individual has completed.

Significant Change

A statistically determined change in data or results that is unlikely to have occurred by chance alone, indicating a meaningful difference or effect.

Proportions

A comparison of a part of a whole in terms of a simple ratio or fraction, often expressed as a percentage.

Business Majors

Students or professionals focusing on business administration or management studies, including subjects like finance, marketing, and entrepreneurship.