Investment A has an expected value of five and a standard deviation of two. Investment B has an expected price of 10 and a standard deviation of five. Using the coefficient of variation approach to comparing these two investments:
1. Investment A would be selected because it has the larger coefficient of variation
2. Investment B would be selected because it has the larger coefficient of variation.
3. Investment A would be selected because it has the smaller coefficient of variation.
4. Investment B would be selected because it has the smaller coefficient of variation.