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Paul is more risk averse than Henry. According to the CAPM, which of the following statements is correct? Paul invests 100% in the market portfolio

Paul is more risk averse than Henry. According to the CAPM, which of the following statements is correct?

Paul invests 100% in the market portfolio while Henry invests 100% of his money in Tesla stock.

Paul allocates a smaller fraction of his wealth to the market portfolio.

Pauls optimal risky portfolio is the market portfolio while Henrys optimal risky portfolio is the risk free asset.

Pauls optimal complete portfolio is on the Capital market line while Henrys optimal complete portfolio is below the Capital market line.

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