Rank the Following Three Stocks by Their Risk-Return Relationship, Best

question 44

Multiple Choice

Rank the following three stocks by their risk-return relationship, best to worst. Rail Haul has an average return of 10 percent and standard deviation of 15 percent. The average return and standard deviation of Idol Staff are 15 percent and 25 percent; and of Poker-R-Us are 12 percent and 35 percent.

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

---

Definitions:

Applied Voltage

Applied voltage is the electrical potential difference intentionally established across a component or circuit to induce current flow.

RLC Parallel Circuit

An electrical circuit consisting of a resistor (R), inductor (L), and capacitor (C) connected in parallel with each other.

Power Factor

A measure of how effectively electrical power is converted into useful work output, representing the ratio of real power flowing to the load to the apparent power.

Circuit

An electrical path between two points.