Many risky assets, borrowing and lending rates are $5\%$ and $2\%.$ The portfolio with the

highest lending Sharpe ratio $T_L$ has mean return $0\mathrm{.}13$ and standard deviation $0\mathrm{.}25.$ The

portfolio with the highest borrowing Sharpe Ratio $T_B$ has mean $0\mathrm{.}19$ and standard deviation

$0\mathrm{.}35.$ Draw by hand the investment opportunity set clearly indicating $R_B,R_L,T_B{T}_L.$ Which

class of investors $($give risk aversion ranges$)$ invest $1)$ in risky assets only via $T_L,2)$ only via $T_B,$

$3)$ in a combination of $T_L$ and $T_B?$ Does this third category borrow or lend at the risk free

rate?