This is because investors here can then maximize utility through leverage as opposed to pricing; see CML diagram. As can be seen in the formula aside, this result is consistent with the preceding, equaling the riskless return plus an adjustment for risk.[2] (The efficient frontier was introduced by Harry Markowitz in 1952. The CAPM was derived by Jack Treynor (1961, 1962), William F. Sharpe (1964), John Lintner (1965) and Jan Mossin (1966) independently.)