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An investor is considering investing in only one of the following securities: Security A B C Expected return 10% 10% 15% Standard deviation 5% 6%

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

Security A B C

Expected return 10% 10% 15%

Standard deviation 5% 6% 9%

Which of the following statements is correct?

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Securities A and B are equally desirable for a risk-averse investor.

Securities B and C are equally desirable for a risk-averse investor.

Security B is better than security C for a risk-averse investor.

Security C is better than security A for a risk-averse investor.

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