Question: 4. Suppose that the borrowing rate that your client faces is 9%. Assume that the equity market index has an expected return of 13% and

4. Suppose that the borrowing rate that your client faces is 9%. Assume that the equity market index has an expected return of 13% and standard deviation of 25%, that rf = 5%. Draw a diagram of your clients CML, accounting for the higher borrowing rate. Superimpose on it two sets of indifference curves, one for a client who will choose to borrow and one for a client who will invest in both the index fund and a money market fund. TYPED ANSWER PLEASE

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