Capital Market Equilibrium with Divergent Borrowing and Lending Rates

B-Tier
Journal: Journal of Financial and Quantitative Analysis
Year: 1971
Volume: 6
Issue: 5
Pages: 1197-1205

Score contribution per author:

2.011 = (α=2.01 / 1 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

The Capital Asset Pricing Model of Sharpe [10, 1964], Lintner [8, 1965], and Mossin [9, 1966] showed how it was possible to derive under fairly stringent assumptions the conditions for equilibrium in a market for risky assets. Recent work has been directed at relaxing these assumptions, and this paper extends the progress made thus far by deriving some properties of capital market equilibrium when investors are faced with divergent borrowing and lending rates and when these rates may vary among investors.

Technical Details

RePEc Handle
repec:cup:jfinqa:v:6:y:1971:i:05:p:1197-1205_02
Journal Field
Finance
Author Count
1
Added to Database
2026-01-24