You are thinking of adding one of two investments to an already well- diversified portfolio.

Security A Security B Expected Return = 14% Expected Return = 16% Standard Deviation= 16% Standard Deviation = 20%

If you are a risk-averse investor, which one is the better choice based on coefficient of variation.

	A.	Either security would be acceptable because they have the same beta.
	B.	Security B, but only if Security B's required return is greater than 12%.
	C.	Security B
	D.	Security A