An investor who wishes to form a portfolio that lies to the right (i.e. riskier) of the Dominant P ortfolio on the CML must:

A: borrow money at the risk-free rate and invest in the optimal risky portfolio.

B: borrow money at the risk-free rate and invest in the riskiest securities in the optimal portfolio.

C: select higher beta stocks to include in the optimal risky portfolio.

D :lend some of her money at the risk-free rate and invest the remainder in the optimal risky.

E: lend money at the risk-free rate and invest the remainder in the optimal risky portfolio.

Answer rating: 100% (QA)

Portfolios that lie to the right of CML are risky portfolios ... View the full answer