An investor is considering investing in only one of the


An investor is considering investing in only one of the following securities:

A B C

Expected Return 0.10 0.10 0.15

Standard Deviation 0.05 0.06 0.09

Which of the following statements is true?

A. Security B is relatively less risky than Security C.

B. Securities B and C are of equal relative risk.

C. Security C is more desirable than Security A if the investor is very risk-averse.

D. Securities A and B are equally desirable if the investor is risk-averse.

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Financial Management: An investor is considering investing in only one of the
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