The expected annual returns are 13% for investment 1 and 14% for investment 2. The standard deviation of the first investments return is 11%; the second investments return has a standard deviation of 5%. Which investment is less risky based solely on standard deviation? Which investment is less risky based on coefficient of variation? Which is a better measure given the expected return of the two investments are not the same?

Which investment is less risky based on standard deviation?

A. __________ is less risky because its standard deviation is ___________

Which investment is less risky based on coefficient of variation?

B. __________is less risky because its coefficient of variation is ___________

Which is better measure given the expected returns of the two investments are not the same?

Coefficient of variation or standard deviation