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

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

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