1. Answer the questions (correct or incorrect), and provide the rationale for your answer.

Only consider the risky assets. The Global tangency portfolio will always give investors higher utility compared to the global minimum variance portfolio.

Only consider the risky assets. The Global tangency portfolio will always have a higher Sharpe Ratio compared to the global minimum variance portfolio.

Consider both risky assets and a risk-free asset. A highly risk-averse investor will choose the Global minimum variance portfolio over the Global tangency portfolio as the optimal risky portfolio.

All investors will choose the Global tangency portfolio as the optimal asset allocation strategy regardless of their degrees of risk aversion.

All investors will choose the Global tangency portfolio as the optimal risky portfolio regardless of their degrees of risk aversion. And then they will mix it with the risk-free asset.

The Global tangency portfolio will always give investors the highest utility regardless of their degrees of risk aversion.

Investors will only allocate their investments on the capital allocation line.