(Answered) Suppose that stock l has a historical return of 12 and the

Finance

Suppose that Stock L has a historical return of 12% and the standard deviation of its historical return is 6%. Stock M also has a historical return of 12%, but the standard deviation of its historical return is 8%. Which of the following statements must be true?
A. Risk averse investors would rather invest in stock L today.

B. Risk averse investors would rather invest in stock M today.

C. Risk averse investors would be indifferent between the two stocks.

D. Cannot be determined.

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