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 15 percent and standard deviation of 24 percent. The average return and standard deviation of Idol Staff are 18 percent and 20 percent; and of Poker-R-Us are 12 percent and 35 percent.

Problem 9-11 Portfolio Weights (LG9-7)

An investor owns $11,000 of Adobe Systems stock, $12,000 of Dow Chemical, and $12,000 of Office Depot. What are the portfolio weights of each stock? (Round your answers to 4 decimal places.)