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

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 portfolio proportion of the risk-free asset.

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