Read the following statements:

1. An investor who, in the presence of a riskless asset, holds an optimal portfolio with a higher variance than the market portfolio is lending-out at the risk-free rate
2. A risk averse investor will only invest in a riskless asset
3. All points on the capital market line can be reached as a weighted combination of the market portfolio and a riskless asset

Select all answers that apply (more than one may be correct, or none may be correct).

	A.	Statement 1 is true
	B.	Statement 2 is true
	C.	Statement 3 is true
	D.	None of the statements are true