. Suppose that there is a risk-free asset and there are a large number of risky assets that are efficiently priced. In this economy an equilibrium exists in which all investors hold a combination of the risk-free asset and the market portfolio. This implies that rational risk-averse investors will always prefer portfolios _____________.

A. located on the efficient frontier of the risky assets to those located on the capital market line B. located on the capital market line to those located on the efficient frontier of risky assets C. at or near the minimum variance point on the efficient frontier D. that are risk-free to all other asset choices