Based on their relative degrees of risk tolerance

Question $7$Select one:

investors will hold varying amounts of the risky asset in their portfolios.

all investors will have the same portfolio asset allocations.

investors will hold varying amounts of the risk$-$free asset in their portfolios.

investors will hold varying amounts of the risky asset and the risk$-$free asset in their portfolios.

investors would perform vastly different levels of security analysis.