Part 1You are a​ risk-averse investor who is considering investing in one of two economies. The expected return and volatility of all stocks in both economies are the same. In the first​ economy, all stocks move togetherlong dash—in good times all prices rise​ together, and in bad times they all fall together. In the second​ economy, stock returns are independentlong dash—one stock increasing in price has no effect on the prices of other stocks. Which economy would you choose to invest​ in? Explain. Part 1​(Select the best choice​ below.) A. A risk averse investor would choose the economy in which stocks move together because the uncertainty is much more​ predictable, and you have to predict only one thing. B. A risk averse investor would prefer the economy in which stock returns are independent because by combining the stocks into a portfolio he or she can get a higher expected return than in the economy in which all stocks move together. C. A risk averse investor is indifferent in both cases because he or she faces unpredictable risk. D. A risk averse investor would choose the economy in which stock returns are independent because risk can be diversified away in a large portfolio.Single choice