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The expected return of Stock A is 15 percent and its standard deviation is 34 percent. The expected return of Stock B is 11 percent

The expected return of Stock A is 15 percent and its standard deviation is 34 percent. The expected return of Stock B is 11 percent and its standard deviation is 42%. Is either of these two stocks definitely preferable to the other one? (Hint: dont compare coefficients of variation.)

Group of answer choices

We cannot tell.

Stock A is definitely preferable to Stock B.

Stock B is definitely preferable to Stock A.

It depends on an individuals risk tolerance.

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