Which investment is less risky based on standard deviation


The expected annual returns are 12% for investment 1 and 14% for investment 2. The standard deviation of investment return is 11%, the second investment's return has a standard deviation of 5%. Which investment is less risky based solely on standard deviation? Which investment is less likely based on coefficient of variation? Which is a better measure given the expected returns of the two investments are not the same?

Which investment is less risky based on standard deviation?

_ (Investment 1 or 2) is less risky because the standard deviation is_ (lower or higher)

Which investment is less risky based on coefficient of variation?

_ (investment 1 or 2) is less risky because its coefficient of variation is_ (lower or Higher).

WHich is a better measure that the expected returns on two investments are not the same?

Coeffiecient of variation or Standard deviation.

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Financial Management: Which investment is less risky based on standard deviation
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