Rank the Following Three Stocks by Their Total Risk Level

question 4

Multiple Choice

Rank the following three stocks by their total risk level, highest to lowest. Night Ryder has an average return of 14 percent and standard deviation of 30 percent. The average return and standard deviation of WholeMart are 12 percent and 25 percent; and of Fruit Fly are 25 percent and 40 percent.

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

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Definitions:

Organizational Structure

The system of tasks, workflows, reporting relationships, and communication channels that link together diverse parts of an organization.

Specific Tasks

Particular or defined jobs or duties assigned to individuals or groups.

High Differentiation

A situation in organizations where there is a large variance in the nature of roles, responsibilities, and levels of authority.

Organizational Units

Subdivisions within an organization, defined by their specific functions, responsibilities, and roles.