Russell Inc. is evaluating four independent investment proposals. The expected returns and standard deviations for each of these proposals are presented below.

Investment proposal

Expected returns

Standard deviation

I

16%

10%

II

14%

10%

III

20%

11%

IV

22%

15%

Which one of the investment proposals has the least relative level of risk?

  1. Investment I.
  2. Investment II.
  3. Investment III.
  4. Investment IV.