An investor is considering the following three stocks, and examines the information below:
Stock Expected Return Risk (standard deviation)
1 12.00% 24.00%
2 15.00% 35.00%
3 20.00% 60.00%
Based solely on the above information which stock appears to be the best investment?
A. Stock 3 as it has the highest expected return.
B. Stock 2 as its return is neither too low nor too high.
C. Stock 1 as its risk is the lowest.
D. Stock 1 as its return per unit of risk is the highest.