Not sure how this question affects the SML instead of the CML:
“According to the CAPM, if investors borrow at a rate that exceeds the risk free rate, the resulting borrowing portfolios will plot a flatter line”
Not sure how this affects the SML instead of the CML. I thought the SML affects different securities on the line, while the CML affects different compositions of one portfolio along the line.
As such, I feel like this statement pertains more to the flattening of the CML instead of the SML.