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An investor who wishes to form a portfolio that lies to the right of the optimal risky portfolio on the Capital Market Line has to
An investor who wishes to form a portfolio that lies to the right of the optimal risky portfolio on the Capital Market Line has to (a) lend some of her money at the risk-free rate and invest the rest in the optimal risky portfolio. (b) borrow some money at the risk-free rate and invest it in the optimal risky portfolio (c) invest only in the risky securities. (d) hold a portfolio that is not diversified.
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