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An optimal risky portfolio has an expected return of 15% and standard deviation of 20%. The risk-free rate is currently 5%. A risk-seeking investor who is considering investing along the capital allocation line (CAL) would most likely:
A
lend 100% of her wealth at the risk-free rate.
B
invest 100% of her wealth in the optimal risky portfolio.
C
borrow 25% of her wealth at the risk-free rate and invest 125% in the optimal risky portfolio.