16. Which of the following is FALSE about the Capital Allocation Line (CAL)? (a) It represents all possible risk and return combinations of the complete portfolio consisting of one risk free asset and one risky asset. (b) Every point on CAL has the same Sharpe ratio. (c) Every point on CAL could be the choice for a particular investor with her degree of risk aversion. (d) None of the above. 17. Suppose an investor is faced with an investment opportunity consisting of a risk free asset and a risky asset. The risk free rate is 3%, and the risky asset expected return is 6%, with a standard deviation of 10%. The investor has a degree of risk aversion A = 6. What is the percentage of wealth that he should invest in the risky asset? (a) 0 (b) 10% (c) 50% (d) 100% 18. An investor uses a risky asset A and a risk free asset to build a complete portfolio, and ri = 3%, E(TA) = 7%, and OA = 12%. Which one of the following portfolios B, C, D, and E can NOT be on the CAL? (a) E(Tb) = 5%, and ob = 6%. (b) E(rc) = 6%, and oc = 9%. (c) E(rd) = 8%, and op = 15%. (d) E(TE) = 9%, and OE = 20%