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Stock A has an expected return of 12% and a standard deviation of 3%. Stock B has an expected return of 15% and a standard
Stock A has an expected return of 12% and a standard deviation of 3%. Stock B has an expected return of 15% and a standard deviation of 8%. Stock C has an expected return of 8% and a 2.5% standard deviation. Which of the following statements is most correct?
A. We would prefer to invest in Stock B because it has the highest return.
B. We would prefer to invest in stock C because it has the lowest risk.
C. We would prefer to invest in Stock A because it has the lowest CV.
D. We would prefer to invest in Stock B because it has the highest CV.
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