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Are the following statements true or false? Please briefly explain your answer. A correct answer without an explanation is worth 0 points. A correct answer

Are the following statements true or false? Please briefly explain your answer. A correct answer without an explanation is worth 0 points. A correct answer with an incorrect explanation can also be worth 0 points depending on how incorrect the explanation is.

e) (1 point) All investors are maximizing the expected return subject to not exceeding some standard deviation they are willing to tolerate. Asset A has a lower Sharpe-ratio and a higher variance than Asset B. Statement: Some investors might still invest some of their wealth into Asset A.

f) (1 point) CAPM holds. Statement: If beta of an asset is 0, the asset must be a risk-free asset.

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