The Standard Deviation of the Returns of Stock a Is

Multiple Choice

The standard deviation of the returns of Stock A is 45.9 percent, and the standard deviation of the returns of Stock B is 52.7 percent. Which of the following statements about the stocks is correct?

A) Stock A has a wider (more dispersed) probability distribution than Stock B, and hence lower total risk.
B) Stock A has a tighter probability distribution than Stock B, and hence lower total risk.
C) Stock B has a wider (more dispersed) probability distribution than Stock A, and hence lower total risk.
D) Stock B has a tighter probability distribution than Stock A, and hence lower total risk.
E) Stock B has a lower risk than Stock A, but nothing can be said about their probability distributions.