Risk Versus Return Rank the Following Three Stocks by Their

question 116

Multiple Choice

Risk versus Return 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

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Definitions:

Dependent Variables

Variables in an experiment or model that are expected to change in response to changes in the independent variable(s).

Nonlinear

Describes a process or relationship where a change in input does not lead to a proportional change in output, indicating a complex, non-proportional relationship between variables.

Negative Relation

A relationship between two variables where an increase in one variable is associated with a decrease in the other variable.

Time-Series Graph

A graphical representation showing how a variable changes over time.