Suppose investors can borrow and lend at different rates. Let Rb denote the return on borrowing and
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Suppose investors can borrow and lend at different rates. Let Rb denote the return on borrowing and R the return on lending. Suppose B/C > Rb >
R, where B and C are defined in (5.6). Suppose each investor chooses a mean-variance efficient portfolio, as described in Exercise
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