Question: (20 pts.) See below the expected returns and standard deviation of returns for five restaurant stocks. Which one of these stocks is most attractive to

  1. (20 pts.) See below the expected returns and standard deviation of returns for five restaurant stocks. Which one of these stocks is most attractive to a risk-averse investor? Why?

Stock

Return

Standard Deviation

Super Foods, Inc.

16%

9%

Crazy Snacks, Co.

12%

7.8%

Jedi Fast Food, Inc.

11%

8.5%

Porters Dining, Inc.

21%

18%

Truman Restaurants

18.5%

12%

All calculations must be shown for intermediate calculations

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