P 11-24 (similar to) You are a risk avere investor who is considering investing in one of two economies. The Docted return and volatility of all stocks in both economies is the same. In the first economy all to move together good times al prices together and in bad times they all fall together in the second economy stock returns are independent one stock asing in price has no effect on the prices of other stocks. Which economy would you choose to invest in? Explain (Select the best choice below) OA. A risk avere investor is indifferent in both cases because he or she laces predictable OB. Ask avente investor would prefer the economy in which stock retums are independent because by combining the stocks into a portfolio he or she can get a higher expected retum than in the economy in which is move together OC Arkaverse investor would choose the economy in which stock returns are independent because can be diverse way in a large porto OD. A risk everse investor would choose the economy in which to move together because the uncertainty is much more predictable, and you have to predict only one thing