You Are Considering Investing in One of the These Three

Multiple Choice

You are considering investing in one of the these three stocks: If you are a strict risk minimizer, you would choose Stock ____ if it is to be held in isolation and Stock ____ if it is to be held as part of a well-diversified portfolio.

A) A; B.
B) B; A.
C) C; A.
D) C; B.
E) A; A.