The Capital market Line The separation Theorem Everyone would obtain in equilibrium the same tangency. K All investors face the same efficient set Each investor will choose the same com bination of risky securities Each investor will spread his or her funds among risky securities in the same relative proportions.The Capital Market Line • The Separation Theorem – Everyone would obtain in equilibrium the same tangency. «All investors face the same efficient set. – Each investor will choose the same combination of risky securities «Each investor will spread his or her funds among risky securities in the same relative proportions