QUESTION 1 If all the financial securities follow simple CAPM, which of the following statements is (are) correct? In equilibrium, all the securities alphas should be positive. An investor's degree of risk aversion will determine his or her optimal mix of the risk free asset and the optimal risky portfolio All investors will choose to hold the different optimal risk portfolios If a stock is underpriced, then investors would rush to purchase this stock. Thus, they are likely to drive up the stock price and cause the expected returns to that Each financial asset should have an identical return per unit of risk