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

question 77

Multiple Choice

Rank the following three stocks by their risk-return relationship, best to worst. 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, Idol Staff, Poker-R-Us
• B) Idol Staff, Rail Haul, Poker-R-Us
• C) Poker-R-Us, Idol Staff, Rail Haul
• D) Idol Staff, Poker-R-Us, Rail Haul

Identify the relevance of profitability ratios in evaluating a firm’s financial performance.

Analyze the significance of accounting cycles, accrual accounting, and the timing of revenue recognition.

Understand and apply the concept of dividends and their impact on shareholder wealth.

Analyze the effects of stock transactions across different points in time, including the purchase, sale, and dividends received.

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Definitions:

Just-In-Time Delivery

A supply chain management strategy that aligns raw-material orders from suppliers directly with production schedules.

Globalization

The method through which companies or different entities gain international impact or commence activities globally.

Type A

refers to a personality type characterized by high levels of competitiveness, self-drive, and a sense of urgency.

Sales Presentation

A detailed pitch or demonstration given to potential customers with the aim of promoting and selling a product or service.