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

Question

Quizplus · Accepted Answer

The risk-return relationship is evaluated by comparing the return per unit of risk (standard deviation). Rail Haul has the highest return-to-risk ratio (0.8), followed by Idol Staff (0.5), and Poker-R-Us (0.4).

Risk Versus Return Rank the Following Three Stocks by Their