Based on their relative degrees of risk tolerance,
A) investors will hold varying amounts of the risky asset in their portfolios.
B) all investors will have the same portfolio asset allocations.
C) investors will hold varying amounts of the risk-free asset in their portfolios.
D) investors will hold varying amounts of the risky asset and varying amounts of the risk-free asset in their portfolios.

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The Answer of Based on their relative degrees of risk tolerance,
A) investors will hold varying amounts of the risky asset in their portfolios.
B) all investors will have the same portfolio asset allocations.
C) investors will hold varying amounts of the risk-free asset in their portfolios.
D) investors will hold varying amounts of the risky asset and varying amounts of the risk-free asset in their portfolios.

Based on Their Relative Degrees of Risk Tolerance