Rank the Following Three Stocks by Their Risk-Return Relationship, Best

Multiple Choice

Rank the following three stocks by their risk-return relationship, best to worst. Rail Haul has an average return of 10 percent and standard deviation of 15 percent. The average return and standard deviation of Idol Staff are 15 percent and 25 percent; and of Poker-R-Us are 12 percent and 35 percent.

A) Rail Haul, Idol Staff, Poker-R-Us
B) Idol Staff, Poker-R-Us, Rail Haul
C) Poker-R-Us, Idol Staff, Rail Haul
D) Idol Staff, Rail Haul, Poker-R-Us