Comparison of Standard Deviations of Two Mutual Funds

In the context of investment returns, measures of dispersion provide insights into the variability and spread of the returns. Suppose an investor is analyzing the annual returns of two mutual funds, Fund A and Fund B. The returns for Fund A over the past five years were: 5%, 7%, 8%, 6%, and 9%. The returns for Fund B were: 10%, 12%, 11%, 10%, and 9%.

To compare the risk associated with these funds, the investor decides to calculate the standard deviation of each fund's returns. Which of the following statements regarding the standard deviations is correct?