1. There are many risky assets and a riskfree asset. There are many risk averse investors and their risk aversions vary over a wide range. Each investor chooses his/her optimal portfolio. If the expected returns of the risky assets all increases by 2% (e.g., from 8% to 10%, from 9% to 11%, and so on), then

A. some people are better off and nobody is worse off

B. some people are worse off

2. There are two risky assets with correlation > -1. There are many risk averse investors, their risk aversions vary over a wide range. If the two assets' correlation decreases, then

A. some people are better off and nobody is worse off

B. some people are worse off