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The introduction of risk-free borrowing and lending changes the nature of the original Markowitz efficient frontier by turning the efficient frontier into a straight line true or false

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Answer: True

Step-by-step explanation:

The efficient frontier consists of the investment portfolios which gives the highest return for a certain level of risk or the lowest risk for the return. The returns that are gotten depends on the portfolios investment combination.

The introduction of risk-free borrowing and lending changes the nature of the original Markowitz efficient frontier by turning the efficient frontier into a straight line.

The statement in the question is true.

User Antonio Leonardo
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