Identifying the Portfolio with Lowest Risk Based on Standard Deviation

In a recent analysis of the monthly returns of three different stock portfolios over a year, the standard deviations were calculated as follows:

- Portfolio A: 3%
- Portfolio B: 5%
- Portfolio C: 7%

The standard deviation is a measure of dispersion that indicates the amount of variation or spread in a set of values. A higher standard deviation reflects a greater degree of dispersion, indicating more volatility in the portfolio's returns.

If an investor is deciding which portfolio to invest in based on their risk tolerance, which portfolio demonstrates the lowest level of risk as indicated by the standard deviation?