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Q1) Suppose the rate of interest on borrowing is higher than the rate of interest at which you can lend. Illustrate and explain the implications
Q1) Suppose the rate of interest on borrowing is higher than the rate of interest at which you can lend. Illustrate and explain the implications for the efficient frontier, and also for portfolio selection decisions where investors have the same information but differing degrees of risk aversion.No calculations are necessary in this section.
Q2)Suggest one way in which your frontiers could be made more efficient.Identify one key limitation of your analysis/suggestion
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