Rank the following three stocks by their level of total risk, highest to lowest. 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, Poker-R-Us, Idol Staff
B) Idol Staff, Poker-R-Us, Rail Haul
C) Poker-R-Us, Idol Staff, Rail Haul
D) Idol Staff, Rail Haul, Poker-R-Us

Question

Quizplus · Accepted Answer

Total risk is typically measured by the standard deviation of returns. The higher the standard deviation, the higher the total risk. Poker-R-Us has the highest standard deviation (35%), followed by Idol Staff (25%), and then Rail Haul (15%).

Rank the Following Three Stocks by Their Level of Total