<p>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 <strong>in reality, all investors cannot access to borrow at the risk-free interest-rate</strong> then?</p>

CC BY-SA 4.0
2021-12-28T04:18:14.110Z
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.
RegressForward
CC BY-SA 4.0
2021-12-28T06:07:58.530Z
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.
Dave Harris
<reference-request><portfolio-theory>
Asking for citation that not all investor can access to borrow at a risk-free rate?
Phil Nguyen
# Asking for citation that not all investor can access to borrow at a risk-free rate?

(Asked by: username_0 on 2021-12-28)

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?

**Tags:** reference-request, portfolio-theory
> **Comments:**
> **username_1**: 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.  
> **username_2**: 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.  

---

## 0 answers

