How does the efficient set change when the condition of borrowing and lending at the same riskfree

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How does the efficient set change when the condition of borrowing and lending at the same riskfree rate is changed to borrowing at a rate greater than the rate at which riskfree lending can be conducted? Explain with words and graphs.

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Fundamentals of Investments

ISBN: 978-0132926171

3rd edition

Authors: Gordon J. Alexander, William F. Sharpe, Jeffery V. Bailey

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Question Posted: Mar 16, 2016 02:51 AM

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How does the efficient set change when the condition of borrowing and lending at the same riskfree

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The efficient set becomes divided into three segments The first seg...View the full answer

Fundamentals of Investments

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