A key insight in risk and return models in finance is that some risks are diversifiable and others are not. This is followed by the assumption that the marginal investor in the company is diversified. Assume that you know the proportion of stock held by different groups and how much trading they account for. Determine which group is most likely to contain the marginal investor? Investor Group % of stock held % of overall trading a. Founder/Insiders 30% 5% b. Government 15% 5% c. Domestic mutual 20% 30% funds d. Individual investors 15% 15% e. Foreign mutual funds 20% 45%