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

question 52

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

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Definitions:

Cultural

Relating to the ideas, customs, social behaviors, and artifacts of a society or community.

Social

Relating to society or its organization.

Attitudinal

Relating to, based on, or expressing someone's attitudes, beliefs, or perceptions.

Organization Chart

A chart displaying the composition of a company, detailing how parts connect and illustrating the hierarchy within positions and roles.