TABLE 17-3
The following information is from 2 investment opportunities.
$$\begin{array} { l c r }
& A & B \
\text { Expected monetary value } & \$ 900 & \$ 600 \
\text { Standard deviation } & 100 & 50
\end{array}$$
-Referring to Table 17-3, what is the return to risk ratio for Investment B?
A) 24
B) 8
C) 12
D) 10

Question

TABLE 17-3
The following information is from 2 investment opportunities.
 $$\begin{array} { l c r } 
& A & B \
\text { Expected monetary value } & \$ 900 & \$ 600 \
\text { Standard deviation } & 100 & 50
\end{array}$$
-Referring to Table 17-3, what is the return to risk ratio for Investment B?
A) 24
B) 8
C) 12
D) 10

Quizplus · Accepted Answer

The return to risk ratio is calculated by dividing the expected monetary value by the standard deviation. For Investment B, it is $600 / 50 = 12$.