9. An investor with a high level of risk aversion will always do what, compared to an investor with a low level of risk aversion? (A combined portfolio includes the choice of weights on a risky portfolio and on a risk-free asset) (a) Invest in a combined portfolio on a CAL that is steeper (b) Invest in a combined portfolio on a CAL that is flatter (c) Invest in a combined portfolio further Southwest along the CAL (d) Invest in a combined portfolio further Northeast along the CAL 10. Which of the following is false about the Single Index Model? (a) All a values are allowed to be non-zero (b) The Covariance between any two securities can be anything, and must be estimated independently (c) It cannot take into account the risk that an increase in the price of sugar will affect both Coca-Cola and Pepsi, but not General Motors (d) It guarantees that our input list is consistent (there are no values in the input list that contradict other values also in the input list)