Which of the statements below characterizes the difference between the two stocks and best answers the question which stock would you. Stock A has less risk and has a higher expected return therefore, I prefer it Stock B has a higher expected return but is riskier. It is impossible to say which stock I would prefer It depends on risk preferences at Stock B is less risky and has a higher return, therefore. I prefer to hold it There is no way to compare the two stocks What is an efficient portfolio? An efficient portfolio is any portfolio that only contains systematic risk it contains no diversifiable risk An efficient portfolio is a portfolio that has the highest return in the economy An efficient portfolio is a portfolio that minimizes the cost to the investor of purchasing it An efficient portfolio is a portfolio that simultaneously has the highest return and the lowest volatility