In finance, the capital asset pricing model (CAPM) is used to determine a theoretically appropriate required rate of return of an asset

Definition of 'Capital Asset Pricing Model - CAPM'

http://www.investopedia.com/terms/c/capm...

http://en.wikipedia.org/wiki/Capital_ass...

Dear Yahoomate,

I am taking Chartered Financial Analyst or also known as CFA classes. I need your help for few points that I need to understand in detail if you could do so.

1. In the CAPM model theory, what happens to the efficient frontier if;

a) You can lend and borrow at the risk free rate?

b) You can lend and borrow at different rates?

c) You can lend but cannot borrow?

d) Lending and borrowing are not allowed?

e) Short sales are permitted?

f) Short sales are not permitted?

2. Why Global Minimum variance portfolio is an interesting portfolio and how it might be used?

3. What is the potential benefit of so called Zero Beta portfolio?

Thank you,

Mait