Question: Stock A: Expected return =8%, standard deviation =12%.Stock B: Expected return =12%, standard deviation =20%.A risk-averse investor is more likely to prefer:Stock A because it

Stock A: Expected return =8%, standard deviation =12%.Stock B: Expected return =12%, standard deviation =20%.A risk-averse investor is more likely to prefer:Stock A because it has lower return and higher riskStock A. because it has lower risk even if the return is sin allerStock B, because it has higher risk and higher returnStock B, because risk does not matter if return is higher

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