Which of the Following Statement(s) Is(are) True Regarding the Selection

Multiple Choice

Which of the following statement(s) is(are) true regarding the selection of a portfolio from those that lie on the capital allocation line?
I. Less risk-averse investors will invest more in the risk-free security and less in the optimal risky portfolio than
More risk-averse investors.
II. More risk-averse investors will invest less in the optimal risky portfolio and more in the risk-free security than
Less risk-averse investors.
III. Investors choose the portfolio that maximizes their expected utility.

A) I only
B) II only
C) III only
D) I and III
E) II and III