Problem:
Given investments A and B with the following risk return characteristics, which of the following is a correct statement that is the best reason to prefer that investment, and why?
Investment A
Expected Return: 12.2%
Std Deviation of Expected Return: 7%
Investment B
Expected Return: 9.8%
Std Deviation of Expected Return: 5%
A,- it has the highest expected return
A - it has the lowest relative return
B - it has the lowest absolute return
B - it has the lowest coefficient of variation
A - it has the highest coefficient of variation