The Expected Rate of Return for 3COM Is 18 Percent

Multiple Choice

The expected rate of return for 3COM is 18 percent, with a standard deviation of 10.98 percent. The expected rate of return for Just the Fax is 26 percent with a standard deviation of 15.86%. Which firm would be considered the riskier from a total risk perspective?

A) 3COM
B) Just the Fax
C) Neither, both have the same risk in a relative sense.
D) Cannot be determined