Part 1Consider the following​ two, completely​ separate, economies. The expected return and volatility of all stocks in both economies is the same. In the first​ economy, all stocks move togetherlong dash—in good times all prices go up 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. Assuming you are​ risk-averse and you could choose one of the two economies in which to​ invest, which one would you​ choose? Explain. Part 1​(Select the best choice​ below.) A. 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. B. 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. 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.单项选择题