Question: 3. Applying the CAPM a. Show graphically (in return-standard deviation space) how some investors may be borrowers, while others may be lenders in the capital

3. Applying the CAPM a. Show graphically (in return-standard deviation space)

3. Applying the CAPM a. Show graphically (in return-standard deviation space) how some investors may be borrowers, while others may be lenders in the capital markets under CAPM. b. Show how the existence of differences between the borrowing and lending rates may affect both borrowers and lenders. Assume that the borrowing rate is higher than the lending rate. 3. Applying the CAPM a. Show graphically (in return-standard deviation space) how some investors may be borrowers, while others may be lenders in the capital markets under CAPM. b. Show how the existence of differences between the borrowing and lending rates may affect both borrowers and lenders. Assume that the borrowing rate is higher than the lending rate

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