The Combination of the Efficient Set of Portfolios with a Riskless

question 46

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 tangency 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 tangency portfolio.

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Definitions:

Antagonistically

Referring to muscles that work in opposition to each other to create movement, such as the biceps and triceps during arm movements.

Flexor Digitorum Longus

A muscle in the lower leg that flexes the toes.

Tibialis Anterior

A muscle located in the front part of the shin that dorsiflexes and inverts the foot.

"You" Attitude

A communication approach focusing on the audience's needs and interests rather than the speaker's, emphasizing the second-person perspective.