Rank the following three stocks by their level of total risk, highest to lowest. 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, Poker-R-Us, Idol Staff
B) Idol Staff, Rail Haul, Poker-R-Us
C) Poker-R-Us, Idol Staff, Rail Haul
D) Idol Staff, Poker-R-Us, Rail Haul

Question

Quizplus · Accepted Answer

Total risk is measured by the standard deviation of returns. Idol Staff has the highest standard deviation (20%), followed by Poker-R-Us (15%), and Rail Haul (10%).

Rank the Following Three Stocks by Their Level of Total