It has been shown that although investors could lower volatility and earn a higher average return on a diversified portfolio:

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Research has shown that investors tend to favor domestic investments, despite the benefits of diversification. This tendency is known as the "home bias factor." Therefore, while a diversified portfolio may lower volatility and earn a higher average return, many investors may still not invest internationally due to their preference for domestic investments. Options B, C, and D are not supported by the information provided.

It Has Been Shown That Although Investors Could Lower Volatility