Stock expected return risk

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Reference no: EM131867973

An investor is considering the following three stocks, and examines the information below:

Stock Expected Return Risk (standard deviation)

1 12.00% 24.00%

2 15.00% 35.00%

3 20.00% 60.00%

Based solely on the above information which stock appears to be the best investment?

A. Stock 3 as it has the highest expected return.

B. Stock 2 as its return is neither too low nor too high.

C. Stock 1 as its risk is the lowest.

D. Stock 1 as its return per unit of risk is the highest.

Reference no: EM131867973

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