Stock Albatross has a risk-premium of 8 and a beta of 1.25. Stock Herring has a risk-premium of 6.4 and a beta of 1. Based on these numbers, you should prefer Multiple Choice Herring because the reward-to-risk ratio is smaller. Albatross because we always want the stock with the highest expected return. Albatross because the reward-to-risk ratio is smaller. Neither because the reward-to-risk ratio is same. We need to know the variance before we can pick between the two