You are given the following information on three stocks: Stock A offers an expected return of 8.0% p.a. with a standard deviation of 15.0% p.a. Stock B offers an expected return of 10.0% p.a. with a standard deviation of 20.0% p.a. Stock C offers an expected return of 10.0% p.a. with a standard deviation of 15.0% p.a. For each of the following statements indicate whether the statement is true or false and briefly explain why?

a) A risk neutral investor would be indifferent between stocks B and C.

b) A risk averse investor would prefer to invest in stock B rather than stock C.

c) A risk averse investor would prefer to invest in stock C rather than stock A.

d) A risk seeking investor would be indifferent between stocks B and C.