Given investments A and B with the following risk return characteristics, which one would you prefer and why? $\begin{array}{lcc}
\text { Investment } & \text { Expected Return } & \begin{array}{c}
\text { Standard Deviation } \
\text { of Exp ected Returns }
\end{array}\
\hline\text { A } & 12.2 \% & 7 \% \
\mathrm{~B} & 8.8 \% & 5 \%
\end{array}$
A)Investment A because it has the highest expected return.
B)Investment A because it has the lowest relative risk.
C)Investment B because it has the lowest absolute risk.
D)Investment B because it has the lowest coefficient of variation.
E)Investment A because it has the highest coefficient of variation.

Question

Quizplus · Accepted Answer

The Answer of Given investments A and B with the following risk return characteristics, which one would you prefer and why? $\begin{array}{lcc}
\text { Investment } & \text { Expected Return } & \begin{array}{c}
\text { Standard Deviation } \
\text { of Exp ected Returns }
\end{array}\
\hline\text { A } & 12.2 \% & 7 \% \
\mathrm{~B} & 8.8 \% & 5 \%
\end{array}$
A)Investment A because it has the highest expected return.
B)Investment A because it has the lowest relative risk.
C)Investment B because it has the lowest absolute risk.
D)Investment B because it has the lowest coefficient of variation.
E)Investment A because it has the highest coefficient of variation.

Given Investments a and B with the Following Risk Return