1. Suppose that Stock L has a historical return of 12% and the standard deviation of its historical return is 6%.Stock M also has a historical return of 12%, but the standard deviation of its historical return is 8%.Which of the following statements must be true?

A. Risk averse investors would rather invest in stock L today.

B. Risk averse investors would rather invest in stock M today.

C. Risk averse investors would be indifferent between the two stocks.

D. Cannot be determined.