# Question: If R bar M 15 and RF 5 and risk free

If (R-bar)M = 15% and RF = 5% and risk-free lending is allowed but riskless borrowing is not, sketch what the efficient frontier might look like in expected return standard deviation space. Sketch the security market line and the location of all portfolios in expected return beta space. Label all points and explain why you have drawn them as you have.

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