Question: See 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?

  1. See 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.

15%

9%

Crazy Snacks, Co.

12%

7.8%

Jedi Fast Food, Inc.

11%

8.5%

Porters Dining, Inc.

21%

18%

Truman Restaurants

18.5%

12%

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