How does the relationship between the average return and the historical volatility of individual stocks differ from the relationship between the average return and the historical volatility of large, well-diversified portfolios? (Select the best choice below.)

A. There is no clear relationship between returns and volatilities for individual stocks or large portfolios.

B. Higher returns are always associated with large volatilities.Higher returns are always associated with large volatilities.

C. Individual stocks with higher returns have lower volatilities. For large portfolios comma no clear relationship exists.Individual stocks with higher returns have lower volatilities. For large portfolios, no clear relationship exists.

D. Large portfolios with higher returns have higher volatilities. For individual stocks comma no clear relationship exists.Large portfolios with higher returns have higher volatilities. For individual stocks, no clear relationship exists.

E. For large stocks and large portfolios there is a clear relationship. Higher returns are associated with higherFor large stocks and large portfolios there is a clear relationship. Higher returns are associated with higher volatilities. However comma for small stocks and small portfolios comma there is no relationship between returns and volatilities.volatilities. However, for small stocks and small portfolios, there is no relationship between returns and volatilities.