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 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