Question: Based on the Separation Theorem one can conclude... a. that the relatively less risk-averse investors would choose an optimal risky portfolio with riskier stocks in

Based on the Separation Theorem one can conclude...

a.

that the relatively less risk-averse investors would choose an optimal risky portfolio with riskier stocks in it.

b.

that all risk-averse investors would invest solely in the risk free asset.

c.

that investment decisions are not affected by an investor's degree of risk aversion.

d.

that all investors facing the same risk-free rate would pick the same optimal risky portfolio.

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