When borrowing and lending at a risk-free rate are allowed, which Capital Allocation Line (CAL) should the investor choose to

When borrowing and lending at a risk-free rate are allowed, which Capital Allocation Line (CAL) should the investor choose to

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When borrowing and lending at a risk-free rate are allowed, which Capital Allocation Line (CAL) should the investor choose to combine with the efficient frontier? I) The one with the highest reward-to-variability ratio. II) The one that will maximize his utility. III) The one with the steepest slope. IV) The one with the lowest slope. 
Group of answer choices A: I and III B: I and IVC: II and IV D: I only E: I, II, and III

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