The change from a straight to a kinked capital allocation line is a result of the: a.

Question:

The change from a straight to a kinked capital allocation line is a result of the:
a. Reward-to-volatility ratio increasing.
b. Borrowing rate exceeding the lending rate.
c. Investor’s risk tolerance decreasing.
d. Increase in the proportion of the risk-free asset.

Portfolio
A portfolio is a grouping of financial assets such as stocks, bonds, commodities, currencies and cash equivalents, as well as their fund counterparts, including mutual, exchange-traded and closed funds. A portfolio can also consist of non-publicly...