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:

Perpetual Inventory System

An inventory tracking system that records the sale or purchase of inventory immediately through the use of computerized point-of-sale systems and enterprise asset management software.

Merchandise Inventory

Finished goods held for sale by a company in the ordinary course of business; also known as stock-in-trade.

Bank Credit Card Sales

Transactions in which the purchase is made using a bank-issued credit card, processed through the banking network.

Credit Card Expense

Charges and fees incurred from the use of a credit card, including purchases, cash advances, and interest charges.