Security A has a higher standard deviation of returns than security B. We would expect that:

I. Security A would have a higher risk premium than security B.

II. The likely range of returns for security A in any given year would be higher than the likely range of returns for security B.

III. The Sharpe ratio of A will be higher than the Sharpe ratio of B.

A)

I, II, and III

B)

II and III only

C)

I and II only

D)

I only