Which of the following investments would be considered best, based on its/their risk-and-return relationship? Assume all investors are risk-averse and the investments will be held in isolation, not in a portfolio.
Investment Expected Return Standard Deviation
G 10% 10%
H 20% 13%
I 13% 15%
J 15% 18%
A. G because its total risk is lowest
B. H because its coefficient of variation is lowest.
C. G and I because they have the same expected return.
D. G, because its standard deviation is highest.