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

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Definitions:

Ration Coupons

Physical or digital vouchers issued by governments or organizations to allow individuals to purchase a limited amount of scarce commodities, historically used during times of war or shortages.

Price Ceiling

Legislation or regulation that sets the maximum legal price a seller can charge for a product or service to prevent market prices from rising above a certain level.

Shortage

A situation in which the demand for a good or service exceeds its supply in a market.

Surplus

is an economic situation in which the quantity of a good supplied exceeds the quantity demanded at the current price, often leading to a decrease in prices.