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The expected returns, standard deviation, and coefficient variation of Stocks A and B are given below. If you are risk adverse investor, which stock will

The expected returns, standard deviation, and coefficient variation of Stocks A and B are given below. If you are risk adverse investor, which stock will you buy?

Stocks A B
Expected Return 15% 12%
Std. Deviation 4% 3.5%
Coefficient Variation, CV 0.27 0.29

Stock A since expected return is higher

Stock B since standard deviation is lower

Stock A since coefficient variation is lower

Stock B since coefficient variation is higher

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