Stock Albatross has a risk-premium of 6 and a beta of 1. Stock Herring has a risk-premium of 5 and a beta of 1.2. Based on these numbers, you should prefer. Multiple Choice Albatross because we always want the stock with the highest expected return We need to know the variance before we can pick between the two. Albatross because the reward-to-risk ratio is larger. Albatross because the reward-to-risk ratio is smaller. Herring because the reward-to-risk ratio is smaller