Question: Given the following information, which statement is correct? Standard deviation of stock A is 2 2 % . Standard deviation of stock B is 1

Given the following information, which statement is correct?
Standard deviation of stock A is 22%. Standard deviation of stock B is 14%. The expected return of A is 18% while the expected return of B is 10%. Risk-free rate is 3%. Market risk premium is 6%.
Group of answer choices
A is more risky than B because of its higher standard deviation relative to the risk-free rate.
B is less risky when you compare its returns to the market risk premium.
B is more risky on the basis of relative risk.
A is more risky because it has higher relative risk.

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