An investor who wishes to form a portfolio that lies to the right of the optimal risky portfolio on the capital allocation line must
A) lend some of her money at the risk-free rate.
B) borrow some money at the risk-free rate.
C) invest only in risky securities.
D) borrow some money at the risk-free rate, invest in the optimal risky portfolio, and invest only in risky securities
E) Such a portfolio cannot be formed.

Question

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The Answer of An investor who wishes to form a portfolio that lies to the right of the optimal risky portfolio on the capital allocation line must
A) lend some of her money at the risk-free rate.
B) borrow some money at the risk-free rate.
C) invest only in risky securities.
D) borrow some money at the risk-free rate, invest in the optimal risky portfolio, and invest only in risky securities
E) Such a portfolio cannot be formed.

An Investor Who Wishes to Form a Portfolio That Lies