One assumption criticized of Markowitz(1952) is that all investors are able to access to borrowing money at a risk-free interest rate. Is there any reference for that in reality, all investors cannot access to borrow at the risk-free interest-rate then?

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    $\begingroup$ You can compare the rate of return on the 30 year bond, typically used as a measure of the risk-free rate, to a typical mortgage rate and see that they are quite different. $\endgroup$ Commented Dec 28, 2021 at 4:18
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    $\begingroup$ This is widely known and obvious in the data. It is likely that there are no citations. It would be similar to seeking a citation for water being wet. The better question would be "does it matter if investors have access to heterogeneous rates," which will be roughly equivalent to "how would a capital model change if a bank exists," as a primary role of banks is to screen and price borrowers. $\endgroup$ Commented Dec 28, 2021 at 6:07


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