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. Night Ryder has an average return of 33 percent and standard deviation of 40 percent. The average return and standard deviation of WholeMart are 10 percent and 20 percent; and of Fruit Fly are 19 percent and 33 percent.

A) Night Ryder, WholeMart, Fruit Fly
B) WholeMart, Fruit Fly, Night Ryder
C) Night Ryder, Fruit Fly, WholeMart
D) Fruit Fly, Whole Mart, Night Ryder