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Problem 9-7 Risk versus Return (LG9-4) Rank the following three stocks by their risk-return relationship, best to worst. Rail Haul has an average return of

Problem 9-7 Risk versus Return (LG9-4) Rank the following three stocks by their risk-return relationship, best to worst. Rail Haul has an average return of 9 percent and standard deviation of 35 percent. The average return and standard deviation of Idol Staff are 12 percent and 30 percent; and of Poker-R-Us are 6 percent and 38 percent.

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1

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3

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