Risk averse investors and more aggressive investors

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All of the assumptions of CAPM except that there is lending rate but NO borrowing rate. in the market.
1) Can we still derive the tangent portfolio
2) Discuss GRAPHICALLY what happen in this case and what RISKY portfolios are chosen by very risk averse investors and more aggressive investors
3) How can the standard CAPM and the zero beta CAPM be combined to form an equilibrium model in this case?

Reference no: EM13663932

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