A risk-averse investment manager is picking stocks (shares of traded companies) for her portfolio. Which of the following are true? I. Suppose there are four stocks A, B, O, D with identical expected returns. A's returns are positively correlated with B's, while O's returns are negatively correlated with D's. Then, if forced to choose between either the pair of stocks ( A, B) OR the pair of stocks (C, D), she would pick (A, B). II. The investor only needs to look at the degree of risk (sometimes called volatility) of the stocks. The expected return of the investment does not matter. Ill. If there are good investments and bad investments, but the investor cannot tell which specific investments are good, then it is possible---but not guaranteed--- that there will be a market failure caused by informational asymmetries. More than one statement is correct. O Only Ill is correct. O Only I Is correct. O No statement is correct. O Only Il is correct