The Presence of a Risk-Free Asset Enables the Investor To

question 5

Multiple Choice

The presence of a risk-free asset enables the investor to:
I.invest in the market portfolio;
II.find an interior portfolio using quadratic programming;
III.borrow or lend at the risk-free rate;
IV.form portfolios having greater Sharpe ratios

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