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Hello Sir John,
One of the assumptions in CAPM is that there is an no restrictions in risk free rate lending from, what does that mean
As you have typed it, it does not mean anything at all!!
The actual relevant assumption is that in practice there is no such thing as a completely risk free rate. We assume for exams that short-term government securities are risk-free. However, although they are generally of very low risk in the short-term, they are not completely without risk.
I do suggest that you watch our free lectures – they are a complete course for Paper F9 and cover everything needed to be able to pass the exam well.
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