https://d2vlcm61l7u1fs.cloudfront.net/media%2F916%2F9165d45b-253b-4482-975b-498a1f5d73e3%2FphpJteEYw.png

Risk to reward ratio = expected maximum profit/expected maximum loss

                      For ABC               0.15/0.20 = 0.75

                      For XYZ                0.15/0.44 = 0.341

From the above solution we can see that the reward to risk ratio is higher in case of ABC stock. So on this metrics stock A should be taken as a preference for investment.

Yes I would agree to my boss to some extent because higher risk to reward ratio is only for the people who has high risk taking ability. The people who cannot take high risk for then lower risk to reward ratio is prefered.