Rank the Following Three Stocks by Their Level of Total

question 109

Multiple Choice

Rank the following three stocks by their level of total risk, highest to lowest. Rail Haul has an average return of 8 percent and standard deviation of 10 percent. The average return and standard deviation of Idol Staff are 10 percent and 20 percent; and of Poker-R-Us are 6 percent and 15 percent.

• A) Rail Haul, Poker-R-Us, Idol Staff
• B) Idol Staff, Rail Haul, Poker-R-Us
• C) Poker-R-Us, Idol Staff, Rail Haul
• D) Idol Staff, Poker-R-Us, Rail Haul

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Definitions:

Pilot

A person who operates the flying controls of an aircraft.

Feedback

Information provided by an agent (e.g., customer, supervisor) regarding aspects of one’s performance or understanding.

Mock-Up

A scale or full-size model of a design or device, used for teaching, demonstration, design evaluation, promotion, and other purposes.

High-Fidelity

Refers to the reproduction of sound or images that is very faithful to the original, with minimal distortion and a high level of detail.