Question: When two risky assets are present and when riskless lending and borrowing is allowed: (choose ALL that apply) A rational investor can choose to split

When two risky assets are present and when riskless lending and

When two risky assets are present and when riskless lending and borrowing is allowed: (choose ALL that apply) A rational investor can choose to split his/her investment between the riskless asset and optimal portfolio of risky assets in any proportion that he/she prefers A rational investor can choose to split the risk-bearing portion of his/her investment among the two risky assets in any proportion he/she prefers A rational investor can split his/her investment between the riskless asset and risky assets in one and only one proportion A rational investor can choose to split the risk-bearing portion of his/her investment among the two risky assets in one and only one optimal proportion The efficient frontier takes on a concave curved shape The efficient frontier takes on the shape of a straight line

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