Which of the Following Statements Is True

Multiple Choice

Which of the following statements is true?

A) The minimum risk portfolio generates the highest returns and is thus likely to be chosen by risk-seeking FI managers.
B) The minimum risk portfolio does not generate the highest returns and is thus likely to be chosen by risk-averse FI managers.
C) The minimum risk portfolio does not generate the highest returns and is thus likely to be chosen by risk-seeking FI managers.
D) The minimum risk portfolio does not generate the highest returns and is thus likely to be chosen by risk-indifferent FI managers.