The Combination of the Efficient Set of Portfolios with a Riskless

question 54

Multiple Choice

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 only invest in the riskless asset.
• B)the capital market line which shows that all investors will invest in a combination of the
• Riskless asset and the market portfolio.
• 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 market portfolio.
• E)None of the above.

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Definitions:

Treatment

An intervention or condition applied to members of an experimental group in a study to observe its effects.

Reaction

A process or change that occurs in response to an action, event, or stimulus.

Age at Retirement

The specific age or period in one’s life when they decide to permanently withdraw from the workforce.

Career Groups

Categories or clusters of occupations based on common characteristics, skills, or fields.