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

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Definitions:

Budgeting Formulas

Mathematical expressions or calculations used in the process of preparing budgets, forecasting revenues, and controlling costs.

Employee Salaries and Wages

Payments made to employees for their labor, including regular salaries and hourly wages.

Customers Served

The number of individual clients or customer accounts that receive goods or services from a business over a specific period.

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An adaptive financial plan that changes in accordance with variations in volume or activity rates.