According to the capital asset pricing model, it is possible to compose a portfolio with a return greater than any one on the efficient frontier, given equal risk, without borrowing funds for investment.

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According to the capital asset pricing model, it is not possible to compose a portfolio with a return greater than any one on the efficient frontier, given equal risk, without borrowing funds for investment. The efficient frontier represents the optimal combination of risk and return, and any portfolio above the efficient frontier would have a higher return but also a higher risk than the optimal portfolios on the frontier. Therefore, borrowing funds may increase the return but also increase the risk, which is not a sustainable strategy.

According to the Capital Asset Pricing Model, It Is Possible