Rank the following three stocks by their total risk level, highest to lowest. Night Ryder has an average return of 14 percent and standard deviation of 30 percent. The average return and standard deviation of WholeMart are 12 percent and 25 percent; and of Fruit Fly are 25 percent and 40 percent.
A) Fruit fly, Night Ryder, WholeMart
B) Night Ryder, WholeMart, Fruit Fly
C) WholeMart, Fruit Fly, Night Ryder
D) WholeMart, Night Ryder, Fruit Fly

Question

Quizplus · Accepted Answer

Night Ryder has the highest standard deviation (30%), followed by Fruit Fly (40%) and WholeMart (25%). Therefore, the ranking from highest to lowest total risk level is: Fruit Fly, Night Ryder, WholeMart.

Rank the Following Three Stocks by Their Total Risk Level