When risk free borrowing or lending is included, what is the difference between the efficient set for the risk seeking and risk averse investors?
A) the difference between the risky asset return and risk free rate
B) the efficient set will be the same for both investors
C) the more risk averse will lie to the southwest of the tangency portfolio
D) the more risk averse investor's indifference curves will be more steeply sloped
Correct Answer:
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