Sally Overall is thinking about two different decisions. One decision is quite risky, while the other decision is more conservative. To help her make the right decision, she decides to calculate the
A) quick ratio.
B) management analysis.
C) money factor.
D) risk-return ratio.
E) entrepreneurial ratio.

Question

Quizplus · Accepted Answer

The best choice for Sally Overall to help her make the decision between a risky and conservative option is to calculate the risk-return ratio. This ratio measures the potential return of an investment against the potential risk of that investment, making it a useful tool for evaluating the tradeoff between risk and potential reward when making investment decisions.

Sally Overall Is Thinking About Two Different Decisions