$35$

Multiple Choice $1\mathrm{.}667$ points

Which one of the following statements is correct?

The risk$-$free rate of return has a risk premium of $1\mathrm{.}0.$

$$ Risks and expected return are inversely related.

Risk premiums are inversely related to the standard deviation of returns.

The reward for bearing risk is called the standard deviation.

The higher the expected rate of return, the wider the distribution of returns.

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