Which of the Following Statement(s)is (Are)false Regarding the Selection of a Portfolio

Which of the following statement(s) is (are) false regarding the selection of a portfolio from those that lie on the Capital Allocation Line?

A) Less risk-averse investors will invest more in the risk-free security and less in the optimal risky portfolio than more risk-averse investors.
B) More risk-averse investors will invest less in the optimal risky portfolio and more in the risk-free security than less risk-averse investors.
C) Investors choose the portfolio that maximizes their expected utility.
D) A and B.
E) A and C.

Correct Answer:

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