In a world where the assumptions of CAPM applied which of the following statements would be correct? I. All investors will hold the market portfolio, which includes all the risky assets in the world. II. Investors' complete portfolio will vary depending on their risk aversion. III. The return per unit of risk will be identical for all individual assets. IV. The market portfolio will be on the efficient frontier and it will be the optimal risky portfolio. Group of answer choicesI,

II and III only. I, III and IV only. I, II and IV only. I, II, III and IV. II, III and IV only. PreviousNext