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

question 80

Multiple Choice

Rank the following three stocks by their risk-return relationship, best to worst. Night Ryder has an average return of 33 percent and standard deviation of 40 percent. The average return and standard deviation of WholeMart are 10 percent and 20 percent; and of Fruit Fly are 19 percent and 33 percent.

• A) Night Ryder, WholeMart, Fruit Fly
• B) WholeMart, Fruit Fly, Night Ryder
• C) Night Ryder, Fruit Fly, WholeMart
• D) Fruit Fly, Whole Mart, Night Ryder

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Definitions:

Machine-Hours

A unit of measure representing the cumulative number of hours a machine is operated within a specific time frame.

Activity Rate

A measure used to assign costs to cost objects, based on the activities that drive costs in an activity-based costing system.

Activity-Based Costing

A cost allocation method that spots activities inside an organization and apportions the costs of these activities to all products and services, according to how much they actually use.

Manufacturing Overhead

All manufacturing costs that are not directly related to individual products, including costs related to indirect labor, materials, and factory operations.