Investors can form complete portfolios out of two assets: a risk-free asset and a risky portfolio. Mary is more risk averse than Laura. Both investors make the optimal portfolio choice. Which of the following statements is true?

		On the capital allocation line, Marys complete portfolio lies to the left of Lauras complete portfolio.
		On the capital allocation line, Marys complete portfolio lies on the same spot as Lauras complete portfolio.
		Marys optimal complete portfolio lies above the capital allocation line, while Lauras complete portfolio lies on the capital allocation line.
		On the capital allocation line, Marys complete portfolio lies to the right of Lauras complete portfolio.