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Choose the correct statements within Capital Allocation Line (CAL) concept: 1) An investor can allocate 100% of his funds into risk free asset. 2) An

Choose the correct statements within Capital Allocation Line (CAL) concept:

1) An investor can allocate 100% of his funds into risk free asset.

2) An investor can allocate more than 100% of his funds into risky asset.

3) An investor can allocate less than 100% of his funds into risky asset, and this situation is called borrowing.

4) The more risk-seeking an investor is, the higher % of funds he will allocate to risk free asset.

5) Slope of CAL is equal to Sharpe ratio.

1, 2, 3

1, 2, 5

2, 3, 5

1, 4, 5

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