Question: (c) Explain how having different interest rates for borrowing and lending affect the Capital Asset Pricing Model (CAPM) and the Security Market Line (SML) and

 (c) Explain how having different interest rates for borrowing and lending

(c) Explain how having different interest rates for borrowing and lending affect the Capital Asset Pricing Model (CAPM) and the Security Market Line (SML) and how is the optimal portfolio choice affected if there are different rates for borrowers and saversaffect the Capital Asset Pricing Model (CAPM) and the Security Market Line

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