Suppose you are analyzing potential stock investments for your portfolio. You have collected historical return data for three stocks, A, B, and C, over the past five years. The average annual returns and standard deviations for each stock are as follows:

• Stock A: Average Return = 10%, Standard Deviation = 8%
• Stock B: Average Return = 12%, Standard Deviation = 10%
• Stock C: Average Return = 16%, Standard Deviation = 12%

Based off the risk and return, if you were to select one stock, which should it be?

Group of answer choices

Stock A

Stock C

Not enough information.

Stock B