This questitate $1$ point$($s$)$ posstate

A report clains that the returns for the investment portiolios with a single stock have a standard deviation of $0\mathrm{.}55,$ while fre returns for portlolios with $35$ stocks have a standard deviation of $0\mathrm{.}321.$ Explain how the standard deviation measures the risk in these two types of portiolics.

Choose the correct answer below.

A$.$ They both have the same risk because the difference in the standard deviation is loo small

single stock.

C$.$ Alower standard deviation means less centainty in the return and more risk. Hence, the returns for porthles ate $35$ stacks have mare fist han the anes with a shople stock

single stock

E$.$ Alower standand deviation means more certainty in the retarn and less rikk. Hence, the returns lor poistalos ath $35$ stock here less rikk than fie anes with a shyple stock