For Problems $23$ through $26$: Suppose that the borrowing rate that your client faces is $6\%.$ Assume that the equity market index has an expected return of $10\%$ and standard deviation of $25\%,$ that $r_f=2\%,$ and that your fund has the parameters given in Problem $21.$

$23.$ Draw a diagram of your client's 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.

$24.$ What is the range of risk aversion for which a client will neither borrow nor lend, that is$,$ for which $y=1?$

$21.$ Consider the following information about a risky portfolio that you manage and a risk$-$fre asset: $E(r_P)=8\%,{}_P=15\%,r_f=2\%.$