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QUESTION A 4p Stock A has an expected return of 9 percent and the standard deviation of its seturns is 30 percent. Stock Bhas an

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QUESTION A 4p Stock A has an expected return of 9 percent and the standard deviation of its seturns is 30 percent. Stock Bhas an expected return of 5 percent and the standard deviation of its returns is 20 percent. If we are a risk averse investor, which stock would we prefer to own? Stock A because it has higher risk per unit of return Stock B because it has higher risk per unit of return O Stock A because it has lower risk per unit of return Stock B because it has lower risk per unit of return O None of the above answers are correct

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