Daniel Blair recently joined an investment club with several of his coworkers. Members of the club are generally quite conservative and are unwilling to invest in debt securities with credit ratings below AA. New investments are always evaluated in the context of the overall portfolio. Based on the attributes of the investment club members, they will most likely pursue an investment strategy that:()
A. attempts to reduce a portfolio’s standard deviation through diversification.
B. seeks the lowest risk securities.
C. tries to totally eliminate systematic risk.