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Which of the following statements are false regarding capital allocation by investors? i) Less risk-averse investors will invest more in the risk-free security and less
Which of the following statements are false regarding capital allocation by investors? i) Less risk-averse investors will invest more in the risk-free security and less in the optimal risky portfolio than more risk-averse investors. Ii) More risk-averse investors will invest less in the optimal risky portfolio and more in the risk-free security than less risk-averse investors. iii) Investors choose the portfolio that maximizes their expected utility.
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