Question: Security A has a higher standard deviation of returns than security B. We would expect that: 1. Security A would have a risk premium equal

Security A has a higher standard deviation of returns than security

Security A has a higher standard deviation of returns than security B. We would expect that: 1. Security A would have a risk premium equal to security B. 2. The likely range of returns for security A in any given year would be higher than the likely range of returns for security B. 3. The Sharpe ratio of A will be higher than the Sharpe ratio of B. Multiple Choice 1 only 2 only O 2 and 3 only O 1, 2, and 3

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