QUESTION 1 Choose the correct statements regarding portfolio theory and asset pricing theory. An investor who is more risk-averse should mitigate his/her risk by investing below CAL. CAPM assumes that the market index is the optimal risky portfolio; thus, the index-tracking strategy is efficient. If CAPM holds, each financial asset should have an idential return per unit of risk. Otherwise, you would arbitrage. Each financial asset with the same total risk should have an identical required return if CAPM holds. Investors choosing different combinations between the risk-free asset and the optimal risky portfolio should enjoy the same efficiency