Ostrich Company and Magnolia, Inc., report the profitability data below. Each fi

Question

Ostrich Company and Magnolia, Inc., report the profitability data below. Each firm had the same amount of resources invested during the five years shown.

2011
2010
2009
2008
2007
Magnolia's profits
$4,050
($1,875)
$3,750
($1,500)
$3,000
Ostrich's profits
$1,525
$1,450
$1,775
$1,500
$1,250

Which company demonstrated the highest amount of risk and which firm earned the highest return? (Points : 2)
Highest Risk: Ostrich; Highest Return: Ostrich
Highest Risk: Ostrich; Highest Return: Magnolia
Highest Risk: Magnolia; Highest Return: Ostrich
Highest Risk: Magnolia; Highest Return: Magnolia

Explanation / Answer

I am positive it is this: Highest Risk: Magnolia: Highest Return: Ostrich

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