CFA Practice Question

There are 294 practice questions for this study session.

CFA Practice Question

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.
Correct Answer: II and III

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