Which of the Following Is True of the Trade-Off Between

Which of the following is true of the trade-off between diversification and management control?

A) Firms with concentrated ownership are likely to be poorly monitored and thus poorly managed.
B) An undiversified investor does not share the benefits of control with other shareholders,but must bear alone the cost of having an undiversified portfolio.
C) An individual investor who wishes to obtain enough shares to control management would generally have to hold an undiversified portfolio.
D) The concentration of ownership is solely based on the costs of bearing firm-specific risk and not on management efficiency.