The table below contains information on the expected return and standard deviation of

three securities$,$ A$,$ B and C$.$

Security Expected return $(\%)$ Standard deviation $(\%)$

A $107$

B $159$

C $2010$

An investor wants to choose any one of the following three options:

I$)$ Investing entirely in security A

II$)$ Investing entirely in security B

III$)$ Investing $50\%$ of the amount in security A and $50\%$ in security C$.$ Correlation

coefficient between the returns of security A and C is $1.$

Required

i$)$ Determine the coefficient of variation for each of the three options

$(6$ marks$)$

ii$)$ Recommend the best option for the investor $(2$ marks$)$