Question: (c) Suppose that the borrowing rate Rr(borrowing) = 9%, is greater than the lending rate Rr=7%. Show graphically how the optimal portfolio choice of some

(c) Suppose that the borrowing rate Rr(borrowing) = 9%, is greater than the lending rate Rr=7%. Show graphically how the optimal portfolio choice of some investors will be affected by the higher borrowing rate. Which investors will not be affected by the borrowing rate? (c) Suppose that the borrowing rate Rr(borrowing) = 9%, is greater than the lending rate Rr=7%. Show graphically how the optimal portfolio choice of some investors will be affected by the higher borrowing rate. Which investors will not be affected by the borrowing rate

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