Rank the Following Three Stocks by Their Level of Total

question 89

Multiple Choice

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:

Cumulative Voting

A voting system used in corporate elections, allowing shareholders to concentrate all their votes on one candidate rather than spreading them out, enhancing minority shareholders' representation.

Straight Voting

A voting method in corporate elections allowing shareholders to cast all their votes for a single candidate for each available position.

Minority Shareholders

Shareholders who own a smaller portion of a company's shares and typically do not have control or significant influence over company decisions.

Ordinary Proxy

A standard proxy that grants another individual the right to vote shares on behalf of the shareholder at a company's annual meeting.