1. A capital allocation line has a kink if lending rates are lower than borrowing rates. II. Investors increase the proportion of the risk-free asset in their portfolio as they become more risk averse. III. Less risk averse investors increase the proportion of the risk-free asset as they seek higher reward-to-volatility ratios. oll only Il and 111 Tonly Ill only o 1. 11, and I I and III I and