Instruction 17-4
The following information is from two investment opportunities.
$$\begin{array} { l c c }
& A & B\
\text { Expectedmonetary } & \$ 900 & \$ 600 \
\text { value }\
\text { standarddeviation } & 100 & 50
\end{array}$$
-Referring to Instruction 17-4,what is the return to risk ratio (RTRR)for Investment B?
A) 24
B) 12
C) 8
D) 10

Question

Instruction 17-4
The following information is from two investment opportunities.
 $$\begin{array} { l c c } 
& A & B\
\text { Expectedmonetary }   & \$ 900 & \$ 600 \
\text { value }\
\text { standarddeviation } & 100 & 50 
\end{array}$$
-Referring to Instruction 17-4,what is the return to risk ratio (RTRR)for Investment B?
A) 24
B) 12
C) 8
D) 10

Quizplus · Accepted Answer

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

Instruction 17-4 the Following Information Is from Two Investment Opportunities

Instruction 17-4
the Following Information Is from Two Investment Opportunities