单选题
Which of the following statements about portfolio diversification is
TRUE?
A. The efficient frontier represents individual securities.
B. When a risk-averse investor is confronted with two investment
opportunities having the same expected return, the investor will take the
opportunity with the lower risk.
C. When a portfolio is efficient, it will lie above and to the left of the
efficient frontier.
【正确答案】
B
【答案解析】The lower the correlation coefficient, the greater the potential for diversification. Efficient portfolios lie on the efficient frontier.