When Borrowing and Lending at a Risk-Free Rate Are Allowed,which

question 56

Multiple Choice

When borrowing and lending at a risk-free rate are allowed,which Capital Allocation Line (CAL) should the investor choose to combine with the efficient frontier?
I.with the highest reward-to-variability ratio.
II.that will maximize his utility.
III.with the steepest slope.
IV.with the lowest slope.

• A) I and III
• B) I and IV
• C) II and IV
• D) I only
• E) I,II,and III

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Definitions:

Unmarried Cohabiting Parents

Couples who live together and have a child or children without being legally married.

Stable

Something that is not likely to change, give way, or falter; enduring and consistent.

Sexual Abuse

A form of abuse involving non-consensual sexual activity or coercion.

Inappropriate Touching

Physical contact that is not consented to, socially unacceptable, or considered offensive.