A stock has an expected return of 12 percent and a standard deviation of 20 percent. Long-term Treasury bonds have an expected return of 9 percent and a standard deviation of 15 percent. Given this data, which of the following statements is correct?

Group of answer choices

Both investments have the same diversifiable risk.

The two assets have the same coefficient of variation.

The bond investment has a better risk-return trade-off.

The stock investment has a better risk-return trade-off.