19) For three stocks A, B, and C, we know that their expected returns are 10%, 15%, and 12% respectively. Their standard deviation is 15%, 20% and 16% respectively. Which one would you choose if you are a risk-lover investor?

A) Stock B because it has the highest return and according to the second principle of finance, between risk and return the is a trade off

B) Stock B because it has the highest value of the coefficient of variation.

C) Stock B because it has the highest value of the standard deviation.

D). Stock A because it has the highest value of the coefficient of variation.

E) Stock B or Stock C because the value of their standard deviation is higher that that of stock

41) The investors required rate of return is determined by the following key factors:

A) The level of inflation rate in the economy and the risk of the firms stock.

B) The level of interest rates in the economy and the risk of the government bonds.

C) The level of interest rates in the economy and the market risk premium.

D) The level of interest rates in the economy and the risk of the firms stock.