A manager, acting on a client's behalf, may choose from three investments:

Expected Return

Expected Standard Deviation $(\backslash$sigma $)$

Fund $1$

$0\mathrm{.}08$

$0\mathrm{.}08$

Fund $2$

$0\mathrm{.}07$

$0\mathrm{.}07$

Fund $3$

$0\mathrm{.}08$

$0\mathrm{.}07$

Which investment is most appropriate for a risk$-$averse client?

fund $1$

fund $2$

fund $3$