Portfolio approach to investing is primarily focused on which of the following:

Correct option is D

The portfolio approach to investing does indeed focus on risk optimization. By carefully selecting and allocating investments in a portfolio, investors aim to optimize the risk-return tradeoff. The goal is to achieve the maximum return for a given level of risk or to minimize risk for a desired level of return. Through proper asset allocation, diversification, and risk management techniques, investors can construct portfolios that are tailored to their risk preferences and investment objectives. The portfolio approach takes into consideration various risk factors such as market risk, industry risk, and individual security risk, and seeks to optimize the overall risk exposure of the portfolio.