I would greatly appreciate it if someone could tell me if I have arrived at the correct answer. Thank you.

Portfolio A has an average 12% return and a standard deviation of 3%, while portfolio B has an average return of 6% with a standard deviation 0f 2%. Which stock portfolio has the higher relative risk?

To solve this I used the coefficient of variation:

Portfolio A: 3%/12% = 25%

Portfolio B: 2%/6% = 33%

Assuming my answers are correct, 25% and 33%, I am not sure what they mean. With coefficient of variation, does it mean the higher the number the more risk/variation. If so the answer is Portfolio B.

a) portfolio A

b) portfolio B

c) there is no way to determine this

d) they are both the same

Thank you