Which of the following statement(s) is (are) true regarding the selection of a portfolio from those that lie on the Capital Allocation Line?

Less risk-averse investors will invest more in the risk-free security and less in the optimal risky portfolio than more risk-averse investors.

Investors choose the portfolio that maximizes their expected utility.

Less risk-averse investors will invest more in the risk-free security and less in the optimal risky portfolio than more risk-averse investors and investors will choose the portfolio that maximizes their expected utility.

More risk-averse investors will invest less in the optimal risky portfolio and more in the risk-free security than less risk-averse investors and investors will choose the portfolio that maximizes their expected utility.

More risk-averse investors will invest less in the optimal risky portfolio and more in the risk-free security than less risk-averse investors.