Total Risk Rank the Following Three Stocks by Their Level

question 38

Multiple Choice

Total Risk Rank the following three stocks by their level of total risk,highest to lowest.Rail Haul has an average return of 10 percent and standard deviation of 15 percent.The average return and standard deviation of Idol Staff are 15 percent and 25 percent; and of Poker-R-Us are 12 percent and 35 percent.

• A)Rail Haul, Poker-R-Us, Idol Staff
• B)Idol Staff, Poker-R-Us, Rail Haul
• C)Poker-R-Us, Idol Staff, Rail Haul
• D)Idol Staff, Rail Haul, Poker-R-Us

---

Definitions:

Impairment Loss

The reduction in the recoverable value of an asset or cash-generating unit below its carrying value.

Pre-Acquisition Profits

Earnings of a subsidiary before control was taken by the parent company; these are not included in the consolidated profit and loss of the parent company.

Dividend Paid

Refers to the portion of a company's earnings that is distributed to its shareholders as a return on their investment.