The Combination of the Efficient Set of Portfolios with a Riskless

question 93

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.
• E) None of these.

---

Definitions:

Credit

An accounting entry that either decreases assets or increases liabilities and equity on a company's balance sheet.

Salaries Expense

The total amount of salary payments made to employees, recognized as an expense in the accounting period in which the employees' services are rendered.

Office Salaries

Office Salaries refer to the compensation provided to employees who perform administrative duties within an office.

Accounts Payable

Money owed by a company to its suppliers or creditors for goods and services received but not yet paid for.