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Investors can form complete portfolios out of two assets: a risk-free asset and a risky portfolio. Peter is more risk averse than Tom. Which of
Investors can form complete portfolios out of two assets: a risk-free asset and a risky portfolio. Peter is more risk averse than Tom. Which of the following statements is consistent with both investors making the optimal portfolio choice? Peter's optimal complete portfolio has 50% invested in the risky portfolio; Tom's optimal complete portfolio has more than 50% invested in the risky portfolio. Peter's optimal complete portfolio has 30% invested in the risky portfolio;Tom's optimal complete portfolio has less than 30% invested in the risky portfolio. Peter's optimal complete portfolio has 100% invested in the risk-free asset; Tom's optimal complete portfolio also has 100% invested in the risk-free asset. Peter's optimal complete portfolio has 100% invested in the risky portfolio; Tom's optimal complete portfolio involves lending money at the risk free rate
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