CAPM is an equilibrium theory based on the theory of portfolio selection. The following figure depicts the relation between risk and return in equilibrium, where M represents the market portfolio constructed by risky stocks. Denote that the risk-free return is rf and the expected return and risk of M are E(rM) and σM, respectively. Which of the following statements is correct?【图片】
A.
The portfolio hold by Investor 2 is more efficient than the portfolio hold by Investor 1
B.
Both investor 1 and investor 2 would invest the same amount of money into risky stocks
C.
Investor 2 puts more money into risky stocks
D.
Investor 2 isn’t a risk-seeking investor