Q1. One can seek higher returns than the optimal risky portfolio by borrowing at the risk-free rate and investing those funds in the optimal portfolio.

True/False

Q2. The efficient frontier contains N portfolios, each consisting of N securities, each of which represent the highest possible return for a given level of risk. These portfolios dominate all others in the risk/return space below them

True/False

Q3. Once the risk-free asset is introduced to the Markowitz model, the combination of it and the market portfolio creates the Capital Market Line. The CML provides risk and return combinations that dominate all other risky portfolios. That is, other than the market portfolio, all other portfolios along the Efficient Frontier become inferior.

True/False