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    Investments Analysis and Management Study Set 2
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    Exam 9: Capital Market Theory and Asset Pricing Models
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    If the Risk-Free Lending Rate Is Lower Than the Borrowing
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If the Risk-Free Lending Rate Is Lower Than the Borrowing

Question 44

Question 44

Essay

If the risk-free lending rate is lower than the borrowing rate, what would the shape of the CML and efficient frontier look like?

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The CML would go from the risk-free rate...

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