Question: Restaurant As average return is 15% and its standard deviation is 12% while Restaurant Bs average return is 17% and its standard deviation is 10%.

Restaurant As average return is 15% and its standard deviation is 12% while Restaurant Bs average return is 17% and its standard deviation is 10%.

a) A risk averse investor will select A as its return is less than B

b) A risk averse investor will select B as its standard deviation is less than A and its return is greater than A.

c) A risk averse investor will select A as its standard deviation is greater B

d) A risk averse investor will select B as its standard deviation is less than A

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