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

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 lower than the Sharpe ratio of B.
A. I only
B. I and II only
C. II and III only
D. I, II, and III
Security A has a higher standard deviation of returns than security

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